Printable Format84-4a-104. Funds transfer—definitions. (a) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the originator's bank or an intermediary bank intended to carry out the originator's payment order. A funds transfer is completed by acceptance by the beneficiary's bank of a payment order for the benefit of the beneficiary of the originator's payment order.
(b) "Originator" means the sender of the first payment order in a funds transfer.
(c) "Originator's bank" means: (i) The receiving bank to which the payment order of the originator is issued if the originator is not a bank; or (ii) the originator if the originator is a bank.
(d) "Intermediary bank" means a receiving bank other than the originator's bank or the beneficiary's bank.
History: L. 1990, ch. 367, § 4; L. 1991, ch. 294, § 3; July 1.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text.
A "funds transfer" is the series of transactions starting with the issuance of the payment order by the sender and ending with the beneficiary's bank's acceptance of the payment order for the beneficiary. It can be comprised of a series of payment orders from the originator/sender to the receiving bank, which may then be the sender of a payment order to a receiving/intermediary bank, which may then send a payment order to the receiving/beneficiary's bank. The originator is the person initiating the funds transfer from the originator to the beneficiary. There may be many senders in a funds transfer. Senders will be any persons sending a payment order. There may be many intermediary banks in a funds transfer. Intermediary banks will be all the banks which receive and then send payment orders, but not the originator's bank or the beneficiary's bank. Thus, in a funds transfer, there will be one originator, one beneficiary, but possibly many senders, receiving banks and intermediary banks. The multiple roles of the banks are similar to those in article 4 where a bank often falls within several definitions for a single transaction.