Commercial Payments


Welcome to LawShelf’s video-course on UCC Banking Law. This course focuses on the laws under the Uniform Commercial Code’s Articles 3, 4 and 5 that affect commercial paper, negotiable instruments and other payment systems. This is an advanced course, and knowledge of the UCC, contract law and/or some exposure to banking law is recommended.

Module 1 introduces the course and discusses negotiable instruments. We will look at the requirements for commercial paper to be considered negotiable and then focus on the protections afforded to a “holder in due course” of a negotiable instrument. We will also discuss the requirements to be considered a holder in due course.

Module two looks at using negotiable instruments, including the difference between issuing, transferring and negotiating instruments. We’ll also look at the liability of various parties when something goes wrong with a negotiable instrument.

Module 3 focus on checks and check collection. We’ll look at check settlement requirements and procedures and common problems in check settlements, such as stop payment orders, dishonor and the problem of the postdated check. We’ll also look at the effects of federal regulations on the check process.

Module 4 turns from checks to other payment systems, such as electronic transfers, credit cards and debit cards. We’ll look at the UCC rules and federal rules that strictly regulate this area of commercial payments.

Module 5 looks at allocation of loss when something goes wrong in the commercial payments process. Problems could include forgeries, fictitious payees and alterations. We’ll look at each of these problems in multiple contexts.

Finally, Module 6 covers letters of credit. We’ll define letter of credit and describe its basic mechanics. We’ll also look at various types of letters of credit, such as commercial and standby letters.

This course should provide the viewer with a solid foundation in banking law applicable to commercial paper, negotiable instruments and payment systems. While this is a complex area of law, we’ve broken it down to the level that we hope is comprehensible to the layperson and we also hope to give you the tools to further research these issues under UCC and federal law.

Best of luck and we welcome your feedback.

What is a video-course?

A LawShelf video-course is an in-depth series of presentations on a discreet legal topic. LawShelf video-courses focus on practical legal information and applications and are each designed to familiarize the viewer with a legal topic quickly and efficiently.

Who should take a video-course?

Our video courses are designed for professionals such as attorneys, paralegals, corporate officers and financial professionals, as well as laypeople looking to deepen their knowledge of particular areas of law. The courses allow you to acquire the specific knowledge and skills that you need without the expense and time commitment of going “back to school” for a degree. 

How do I learn?

Video courses are divided into 5 or 6 modules.  Each module contains a video lesson (usually about 15 minutes long) and a series of self-test questions that you can use to practice and make sure that you understand the material.

How do I complete a video-course?

To complete a video-course, you must pass a 10-question multiple-choice examination by scoring 70% or higher.  The questions on the exam are randomly selected from the self-test question sets for the various modules. You can retake an exam as many times as you need to, though you will not get the same questions each time since the questions are drawn from an exam bank.

Is there limit to how many video-courses I can take or complete?

No. A LawShelf subscription enables you to access any and all LawShelf content, including all video-courses. You can take courses as quickly or slowly as your time allows.

Do I receive any recognition for completing a video-course?

Once you complete the course by passing the final exam, you will be awarded a digital badge to display as evidence of your training and accomplishment.

How will a digital badge help me? 

Modern educational trends are moving away from traditional classroom-based course completion models and towards skills-based education. Employers today care more about skills than ever before. LawShelf digital badges conform to the Open Badge standard and are verifiable records of your skills that can easily be shared online.

How long do I retain access to the course materials?

You retain access the modules and take the final exam as long as you are a subscriber to LawShelf.

Negotiable Instruments - Module 1 of 6

Liability and Negotiable Instruments - Module 2 of 6

The Check Collection Process - Module 3 of 6

Electronic Funds Transfers and Other Payment Systems - Module 4 of 6

Allocation of Loss in Commercial Payments - Module 5 of 6

Letters of Credit - Module 6 of 6

Final Exam only needs to be taken by those seeking to earn the Digital Badge credentials for this course.