Welcome to LawShelf’s video-course on UCC Banking Law. This course focuses on the laws under the Uniform Commercial Code’s Articles 3, 4 and 5 that affect commercial paper, negotiable instruments and other payment systems. This is an advanced course, and knowledge of the UCC, contract law and/or some exposure to banking law is recommended.

Module 1 introduces the course and discusses negotiable instruments. We will look at the requirements for commercial paper to be considered negotiable and then focus on the protections afforded to a “holder in due course” of a negotiable instrument. We will also discuss the requirements to be considered a holder in due course.

Module two looks at using negotiable instruments, including the difference between issuing, transferring and negotiating instruments. We’ll also look at the liability of various parties when something goes wrong with a negotiable instrument.

Module 3 focus on checks and check collection. We’ll look at check settlement requirements and procedures and common problems in check settlements, such as stop payment orders, dishonor and the problem of the postdated check. We’ll also look at the effects of federal regulations on the check process.

Module 4 turns from checks to other payment systems, such as electronic transfers, credit cards and debit cards. We’ll look at the UCC rules and federal rules that strictly regulate this area of commercial payments.

Module 5 looks at allocation of loss when something goes wrong in the commercial payments process. Problems could include forgeries, fictitious payees and alterations. We’ll look at each of these problems in multiple contexts.

Finally, Module 6 covers letters of credit. We’ll define letter of credit and describe its basic mechanics. We’ll also look at various types of letters of credit, such as commercial and standby letters.

This course should provide the viewer with a solid foundation in banking law applicable to commercial paper, negotiable instruments and payment systems. While this is a complex area of law, we’ve broken it down to the level that we hope is comprehensible to the layperson and we also hope to give you the tools to further research these issues under UCC and federal law.

Best of luck and we welcome your feedback.