Uniform Commercial Code § 4A-202

Uniform Commercial Code § 4A-202

Definition

A provision of the Uniform Commercial Code that offers a bank two methods of shifting to its customer the loss of an unauthorized funds transfer: (1) the person identified as the sender of the payment order for the funds transfer either authorized the order or is otherwise bound by it under the law of agency; or (2) (a) the bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer will be verified by a commercially reasonable security procedure and (b) the bank proves it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer.

Get full access FREE

With a 7-Day free trial membership
Here's why 736,000 law students have relied on our key terms:
  • A complete online legal dictionary of law terms and legal definitions
  • Over 7,900 key terms written in plain English to help you not only understand the law but master it
  • The premier online law dictionary built specifically for law students
  • Easy access in class or on the go, accessible both online and through the Quimbee mobile app
  • Reliable - written by legal professors and practitioners
  • Get instant access to all related rules of law to any specific key term with a Quimbee Study Aid plan

Get full access FREE

With a 7-Day free trial membership