Article 4 (Bank Deposits and Collections)

Article 4 (Bank Deposits and Collections) establishes the rules for handling payments such as checks and drafts. It states that a bank must verify the authenticity of documents before paying or collecting funds. The article also outlines the responsibilities and liabilities of banks during deposit, collection, and payment processes, including the need for proper endorsement and timely processing. Essentially, it sets standards to ensure secure and efficient transfer of funds via banks, protecting both the bank’s and the customer’s interests during deposit and collection transactions.