For your convenience, here is a collection of all the slides shown in the video review lectures.

Please Note: The National Conference of Commissioners on Uniform State Laws and the American Law Institute approved a revision of UCC article 1 in 2001, and approved amendments to article 3 in 2002 and 2003. This revision and these amendments changed not only the content of the law, but also the numbering of many statutory sections. These lectures are based on the revised and amended versions of these articles. You should take care to look for differences when reading older cases.
 
I. ENFORCEMENT OF NEGOTIABLE INSTRUMENTS AND RECOVERY OF NEGOTIABLE INSTRUMENTS
A. Two Basic Kinds of Actions Involving Negotiable Instruments
  1. Sometimes plaintiffs sue to enforce payment of a negotiable instrument. Taylor v. Roeder; Kaw Valley State Bank v. Riddle; Maine Family Federal v. Sun Life; Universal C.I.T. v. Ingel; Gonzalez v. Old Kent Mortgage.
  2. Other times plaintiffs sue to recover possession of a negotiable instrument or its proceeds. Miller v. Race; Smith v. Olympic Bank; Bowling Green v. State Street Bank.
B. Arguments Made in Enforcement Actions
    Plaintiff's Arguments       Defendant's Arguments
1.   Defendant failed to pay.   2.   Plaintiff is not entitled to enforce.
           
who may enforce   3-301(i)-(iii)
-- holders   1-201(b)(21)(A)
-- transferees etc.   3-203(b)
-- losers   3-309(a),(b)
required proof   3-308
        3.   The instrument is subject to a defense.
           
real defenses   3-305(a)(1)
ordinary defenses   3-305(a)(2)
claims in recoupment   3-305(a)(3)
             
4.   The defense is invalid.        
             
5.   The defense is inapplicable to HIDC.   6.   Plaintiff is not a HIDC.
   
HIDC rights   3-305(b)
     
HIDC requirments   3-302(a)
negotiable instrument   3-104(a)
good faith   3-103(a)(6)
notice   1-202(a)
-- defenses    
-- overdue/default   3-304
-- ownership claims   3-306
-- fiduciary duty   3-307(b)
-- "close connection"    
value    
-- purchasing   3-303(a)(1)
-- taking in payment   3-303(a)(3)
-- deposited check   4-211,4-210(a)
             
7.   Shelter doctrine gives me HIDC rights.   8.   Consumer laws preserve defenses.
    shelter 3-203(b) & cmt. 2      
UCCC   3.404 [3-302(g)]
FTC   12 CFR 433.2 [3-305(e)]
B. Recovery
Plaintiff's Claim
Defendant is in wrongful possession of an instrument of its proceeds. 3-306
Defendant's Typical Response
The claim is inapplicable to HIDC. 3-306

II. LIABILITY ON NEGOTIABLE INSTRUMENTS

1. Liability of Parties on Checks
  drawee   3-408, 3-409(d), 4-402
  drawer   3-414(b),(c)
  indorser   3-415(a),(b),(c),(e)
  transferor   3-416(a),(c)
  stop payment orders   4-403(a)
       
Example 1: Liability on Ordinary Checks
  Drawee Bank          
  PTO Payee   PTO X      
  /s/ Drawer   /s/ Payee      
Drawer ---------------------> Payee --------------> X ------> Y
          <-----  
         

$

 
             
2. Cashier's, Teller's, and Certified Checks
  refusal to pay   3-411(b), 3-305(c)
  merger doctrine   3-310(a),(b)(3)
  lost instrument    
  -- enforce as loser   3-309(a), (b)
  -- declaration of loss   3-312
Example 2: Teller's Check Transaction
  Bank B      
  PTO Seller      
  /s/ Bank A      
Bank A ------------------>

Debtor

--------------> Creditor
  <------------------

(remitter)

<--------------  
 

$$

 

discharge

 
     

of debt

 
         
3. Accommodation Parties and Representatives
  contribution   3-116(a),(b)
  reimbursement   3-419(f) [formerly 3-419(e)]
  represented party   3-402(a)
  representative   3-402(b)
       
Example 3:   Example 4:
Accommodation   Representatives
We promise to PTO of Payee $10,000.
/s/ Co-Maker 1
/s/ Co-Maker 2
/s/ Co-Maker 3, for accommodation

(on back as indorsement)

/s/ Anomalous Indorser
 
We promise to PTO
Payee $10,000.
XYZ Corp., by
/s/ X, Vice President
     
4. Accord and Satisfaction on Checks
  accord and satisfaction requirements   3-311
  reservation of rights   1-308(b) [formerly 1-207(2)]

 

III. CHECK COLLECTION

  check                  
drawer -------> payee ------> depositary ------> intermed. ----> payor ----> drawer
      <------

bank

<------

bank

<---- bank <----  
      credit   credit   debit   debit  
 
DEPOSITARY BANK
1. crediting customer's account for deposited check
 
CHECK TYPE   AVAILABILITY   REG. CC
low risk/1st $100   1-day (M-Tu)   229.10(c)(i)-(vi)
local   2-day (M-W)   229.12(b)
non-local   5-day (M-M)   229.12(c)
exceptions   reasonable period   229.13(b)-(f),(h)(2)
2. revoking credit from customer's account
 
right to revoke without liability   4-214(a)
-- midnight deadline   4-104(a)(10)
-- longer reason time    
liability for later revocation   4-214(a)
3. forwarding checks to payor bank
 
ordinary care   4-201(a)(1)
encoding warranties   4-409(a),(c)
 
PAYOR BANK
1. decision to return check
 
right to return check   4-301(a)
-- midnight deadline   4-104(a)(10)
-- accountable if not returned   4-302(a)(1)
-- unavoidable delay   4-109(b)
2. expeditious return requirement
 
2-day/4-day test   229.30(a)(1)
forward collection test   229.30(a)(2)
midnight deadline extension   229.30(c)

 

IV. FORGED SIGNATURES ON CHECKS

Example # 1 : FORGED DRAWER'S SIGNATURE
 

PTO payee

         
 

/s/ customer

 

payee

     
thief -----------------> payee ---------> depositary -----> payor
  <-----------------   <---------

bank

<-----

bank

 

goods

 

$$

 

$$

 
 
Example # 2: FORGED INDORSEMENT
 

PTO payee

             
 

/s/ customer

     

payee

     
customer ------------------> payee ---------> thief ---------> depositary ---> payor
  <------------------  

stolen

  <---------

bank

<---

bank

 

goods

     

$$

 

$$

 
 
1. May the payor bank charge the customer's account?
  properly payable rule   4-401
  exceptions    
  -- negligence   3-406(a),(b); 3-103(a)(9) [formerly 3-103(a)(7)]
  -- reporting delay   4-406(c),(d)(1)&(2),(e)
 
2. May the payor bank recover for breach of warranty?
  presenment warranties    
  -- entitled to enforce   4-208(a)(1), 3-417(a)(1)
  -- no knowledge of forged drawer's signature   4-208(a)(3), 3-417(a)(3)
 
3. May the payor bank obtain restitution?
  restitution for mistaken payment   3-418(b)
  Price v. Neal exception   3-418(c)
 
4. May anyone else recover?
  transfer warranties    
  -- all signatures authentic and authorized   4-207(a)(2), 3-416(a)(2)
  -- entitled to enforce   4-207(a)(1), 3-416(a)(1)
  conversion   3-420(a)
  forged signature effective against signer   3-403(a)
 
5. What are the "special cases" rules regarding signatures?
  misnamed payee   3-110(a), 3-204(d)
  nominal/ficitious payee   3-404(a)
  impostor   3-404(a)
  employee forgery   3-405(b)

 

V. FUNDS TRANSFERS

  payment              
 

order

             
originator ---------> originator's -----> intermed. -----> beneficiary's -----> beneficiary
   

bank

 

bank

 

bank

   
                 
duty to pay   4A-402(b)
money-back guarantee   4A-402(c),(d)
cancellation   4A-211(b),(c)
restitution for mistakes   4A-303
misdescribed beneficiary   4A-207
liability for orders sent by others    
-- authorized   4A-202(a)
-- effective   4A-202(b)
  and not unenforceable
  4A-203(a)(2)

 

VI. CREDIT CARDS

Sample Credit Card Statement

First Bank VISA

Monthly Billing Statement for November

11-01   Eastern Bicycle   $ 250.95
11-10   Western Diner   $ 103.65
         
Consumer Credit Protection Act / Truth in Lending Act
asserting defenses   Sec. 170 [15 U.S.C. 1666i]
unauthorized use    
-- definition   Sec. 103(o) [15 U.S.C. 1602(o)]
-- liability   Sec. 133 [15 U.S.C. 1643]

 

VII. LETTERS OF CREDIT

   

promise to

   
   

sell goods

   
 

seller

-------------->

buyer

 
  (Beneficiary) <-------------- (Applicant)  
 

/\

promise to

|

 

letter

|

pay

|

application
of credit

|

 

|

 
 

|

 

\/

 
 

\ ____

_________

bank

 
     

(Issuer)

 
         
1. Beneficiary's possible claims
Against   Claim   Section   Recovery
Issuer   wrongful dishonor   5-111(a),(e)   amount of credit
Applicant   breach of contract   5-103(d), cf. 2-703   contract remedies
             
2. Applicant's possible claims
Against   Claim   Section   Recovery
Issuer   wrongful dishonor   5-111(b),(e)   damages incurred
Beneficiary   breach of contract   cf. 2-711   contract remedies
             
3. Issuer's possible claims
Against   Claim   Section   Recovery
Applicant   rightful honor   5-108(i)(1)   reimbursement
Beneficiary   breach of contract   5-117(a)   A's contract remedies
    via subrogration