Article 4 of the UCC

Article 4 of the Uniform Commercial Code (UCC) primarily governs the relationship between banks and their customers, focusing on the processing, handling, and settlement of payments, especially checks and electronic transfers. It outlines how banks should manage these transactions, handle customer instructions, and address liabilities if errors or disputes occur. Essentially, it provides a standardized legal framework that ensures consistency and clarity in banking transactions, protecting both customers and banks, and facilitating smooth movement of funds within the banking system.