BankerCollege

BACKGROUND

Bankers need to have a thorough understanding of Uniform Commercial Codes (UCC) 3 and 4, as well as Regulation CC, in order to operate effectively within the banking industry. 

• A lack of understanding of UCC 3 could lead to errors in processing transactions, which can result in significant financial losses for banks and their customers. 
• Bankers need to be familiar with UCC 4 to ensure that they are compliant with all regulations related to deposit and collection of funds. 
• Finally, understanding and complying with Regulation CC is crucial for banks to maintain customer satisfaction and avoid regulatory penalties. 

Overall, knowledge of UCC 3 and 4, as well as Regulation CC, is essential for bankers to operate in a safe and effective manner and to maintain the trust of their customers.

Join Wespay, the Regional Payments go-to authority on checks, negotiable items in general and so much more, for this critical 2-part series that will give you and your team everything they need to know for staying compliant with each of these regulations.

In Part One - Uniform Commercial Code of this two-part series, we will review of the check payment system’s regulatory foundation, focusing on UCC. 

• Uniform Commercial Code Overview
  
  • UCC 3 - Overview of Negotiable Instruments
  • UCC 4 - Bank Deposits and Collections
  • UCC Transfer Warranties
  • UCC Presentment Warranties
  • Statute of Limitations

• UCC 3
  • Negotiable Instruments
  • Checks and Demand Instruments 
  • Elements: Payable To, Date, Amount, Payee
  • Indorsements
  • Negotiation
  • Holder in Due Course
  • Official Checks, and Stop Payment Liability
• UCC 4
  • Final Payment
  • Return Items and 'Midnight Deadline'
  • Rights to Stop Payment
  • Stale-dated items
  • Customer Death and Chargebacks

In Part Two - Regulation CC, we will look at the regulatory foundation with a discussion of Regulation CC, part of the Code of Federal Regulations (CFR). 

• Subpart A - General
  • Definitions
  • Electronic Checks
• Subpart B - Funds Availability
  • Availability Schedules
  • Exceptions to Availability Schedules
  • General Disclosure
• Subpart C - Collection of Checks
  • Indorsements
  • Depository/Paying Banks
  • Non Payment
  • Electronic Check Warranties
  • Remotely Created Checks
  • Restrictive Indorsements
  • Electronically Created Items

• Subpart D - Check Substitution
  • Defined
  • Warranties and Indemnities
  • Check 21 Compliance  and Liabilities

Scenarios will be used to illustrate key warranties and how breach of warranty situations may be handled.