SS. 4-302(a), 4-104(10) - drawee bank's failure to meet midnight deadline
Article Abstract:
A drawee bank is liable for the face amount and actual damages incurred when it does not return or pay a check prior to stated midnight deadline, according to a court ruling based on UCC 4-302(a). The court ruled the check's holder should be able to assume the check as having been paid, since it had not been contacted by the drawee bank. Financial practices would be disrupted if banks were allowed to keep checks indefinitely without liability.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Section 9-103(3) - landscaping equipment does not qualify as "mobile goods" - single filing "location of debtor" rule inapplicable
Article Abstract:
A 1996 bankruptcy court ruling held that the location of debtor rule is inapplicable to single filings and that the landscaping equipment in dispute could not be considered "mobile goods." A security interest is perfected in mobile goods by filing in the debtor's jurisdiction. However, the court ruled the creditor's perfected security interest was lost when the bank did not refile after the equipment had been removed to its destination state.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Sections 2-106, 2-401, 2-313 - local repair facilities required to fulfill express warranties in mail order sales - where did the sale occur?
Article Abstract:
A Calif appellate court 1996 ruling held that Calif law was inapplicable in an action involving a mail order company because the sales transaction had actually taken place in Minnesota. The Minnesota seller and the Calif buyer were considered to have entered a shipment contract. The seller's warranty procedure had been at odds with Calif's Song-Beverly Consumer Warranty Act, which requires local repair facilities to cover express warranties.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: SS 1-201(19), 1-203, 2-103, 2-104(1) - good-faith requirements in contract negotiations. SS. 9-203(1), 9-105(1)(L) - application of "composite document" theory for creation of a security interest
- Abstracts: Rev. s. 4-303, 4-104(a)(9) - priority of judgment creditor of bank depositor against bank's setoff. Section 9-104(i) - exclusion of bank setoff from Article 9 coverage - Pennsylvania common law priority of setoff over perfected security interest in a certificate of deposit
- Abstracts: Seagram case and Seagram's actions highlight current developments. Administrative proposals point to changes for pass-through entities
- Abstracts: A report card on the baby boom's retirement planning efforts. Financial Literacy 2000
- Abstracts: Application of the bespeaks caution doctrine to federal securities fraud claims. Regulation of security analysts