Article 4A of the Uniform Commercial Code (UCC) governs funds transfers. It provides a set of rules and standards for electronic funds transfers (EFTs) between banks and other financial institutions.
More specifically, Article 4A sets out the rights and responsibilities of parties involved in funds transfers, including the sender, the beneficiary, the intermediary banks, and the receiving bank. It also establishes the liability for unauthorized transfers, errors, and other issues that may arise during the transfer process.
One of the key provisions of Article 4A is the requirement for banks to use commercially reasonable security procedures when processing funds transfers. This helps to protect the parties involved from fraud and unauthorized access to their accounts.
Overall, Article 4A of the UCC is an important legal framework that helps to facilitate the efficient and secure transfer of funds between financial institutions.
nones
