An introduction to the “payments” articles of the Uniform Commercial Code, namely Article 3 (Negotiable Instruments), Article 4 (Banking), Article 4A (Electronic Funds Transfers), and Article 5 (Letters of Credit). Related topics include non-UCC payment systems such as credit cards, with a minimum amount of federal regulation as necessary.
The core of the course (and the reason to study payments even if you never wish to become a bank lawyer) is the doctrine of negotiability and the rights of the bona fide purchaser, known in this context as the “holder in due course.” Negotiability--or the interesting idea that the transferee can get more than the transferor had to give--runs through the whole of commercial law and the UCC, but it is particularly prominent in the payments context.
