KRS 355.4A-103: Payment order -- Definitions.

(1) In this article:

(a) "Payment order" means an instruction of a sender to a receiving bank,

transmitted orally or in a record, to pay, or to cause another bank to pay, a

fixed or determinable amount of money to a beneficiary if:

1. The instruction does not state a condition to payment to the beneficiary

other than time of payment;

2. The receiving bank is to be reimbursed by debiting an account of, or

otherwise receiving payment from, the sender; and

3. The instruction is transmitted by the sender directly to the receiving

bank or to an agent, funds-transfer system, or communication system for

transmittal to the receiving bank;

(b) "Beneficiary" means the person to be paid by the beneficiary's bank;

(c) "Beneficiary's bank" means the bank identified in a payment order in which

an account of the beneficiary is to be credited pursuant to the order or which

otherwise is to make payment to the beneficiary if the order does not provide

for payment to an account;

(d) "Receiving bank" means the bank to which the sender's instruction is

addressed; and

(e) "Sender" means the person giving the instruction to the receiving bank.

(2) If an instruction complying with subsection (1)(a) of this section is to make more

than one (1) payment to a beneficiary, the instruction is a separate payment order

with respect to each payment.

(3) A payment order is issued when it is sent to the receiving bank.