A uniform act has governed negotiable instruments for a 100 plus years. The initial Negotiable Instruments Law was promulgated by the ULC in 1896. It was the law of the land before the first decade of the 20th Century ended. It remained the law of the land until the Uniform Commercial Code was promulgated, initially in 1951. The old NIL was incorporated into Uniform Commercial Code (UCC), Articles 3 and 4. Article 3 is called “Negotiable Instruments” and is fundamental law to all negotiable instruments. Article 4 is entitled “Bank Deposits and Collections” but is more familiarly thought of as the law of checks. A check is a negotiable instrument drawn on a “bank.” It is subject to the rules of Article 3, but Article 4 provides specific rules that apply to checks as negotiable instruments in the banking system. Continue reading “A Summary UCC Article 3, Negotiable Instruments and Article 4, Bank Deposits.”
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