Also known as: originators · drawer · maker
Written by attorneys · grounded in primary & secondary sources — see below
The sender of the first payment order in a funds transfer. The term identifies the party that initiates the series of transactions intended to move funds to a beneficiary.
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Olga O'Neill instructs her bank to send a payment order to a vendor. The bank later discovers the order was induced by a misrepresentation about the vendor's identity. Olga remains the originator and bears the loss when the bank accepts the order without knowledge of the fraud.
Oasis Resorts, acting as originator, issues a payment order that reaches the beneficiary's bank. A third party later claims the transfer caused pecuniary loss through reliance on an earlier statement by the originator. The originator faces liability for the loss under the same standard that would apply if the representation had been repeated.
Orson Ochoa signs a draft ordering payment from his account to a supplier. The draft is presented through the banking system. Orson qualifies as both the drawer and the originator of the resulting funds transfer.
Ophelia O'Brien sends a payment order as originator after receiving a statement about account balances. The statement would likely induce a reasonable person to proceed. The originator's bank may treat the order as binding because the statement meets the test for materiality.
Otto Osman, the originator of an earlier funds transfer, induces a recipient to enter a second transaction. The recipient relies on the prior representation when dealing with a third party. The originator incurs the same liability for loss as if the representation had been made directly for the later deal.
Odilia Okamura, originator of a completed funds transfer, executes a writing discharging the receiving bank's duty. The release takes effect on delivery and ends the bank's obligation once the stated condition occurs.
The sender of the first payment order in the series of transactions that begins the transfer is the originator. Subsequent banks that issue their own orders are not originators.
The originator's liability for the payment order is fixed once the beneficiary's bank accepts the order. Later disputes between other parties do not shift that liability back to the originator.
The originator is the party that issues the initial payment order. The originator's bank is the receiving bank to which that order is issued when the originator is not itself a bank.
…The particular importance of this advance resides in the fact that under such circumstances strict liability is imposed upon the maker or seller of the product. Recovery of damages does not depend upon proof of negligence or knowledge of the defect. Simon v. Graham Bakery, supra ; Tomlinson v. Armour & Co. , 75 N. J.…