Deposit Agreements - Why you Need Them


Presented by: Paul Carrubba                  

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Articles 3 and 4 of the Uniform Commercial Code contain provisions that govern negotiable instruments and the relationship between a bank and its customer. One major problem facing financial institutions is that the UCC has not kept up with technology and the conversion of checks from paper to images. While the Check 21 Act created a new negotiable instrument that is subject to the UCC, an image of the check may or may not be subject to the UCC and must be addressed in an agreement. The provisions of the UCC cover most of the liabilities and responsibilities of the parties, but not all of them. The UCC also allows for the bank and the customer to agree to amend the provisions of the UCC, but the parties cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care. For example, a bank and a customer can agree to shorten the period of time under the UCC within which the customer must notify the bank of an unauthorized transaction.

This session will provide the attendee with an understanding of many of the major issues that should be addressed in the Deposit Agreement and will include specific provisions that should be included. Some of the provisions that will be addressed will be:
  • Joint account overdrafts
  • Automated processing of transactions
  • Legends on checks
  • Sequence of posting items
  • Remotely created checks
  • Arbitration and waiver of jury
  • Security interest in the account
  • Charge-back or return item
  • Check images and electronic items subject to UCC and the Agreement
  • and many more provisions
About the Speaker: Paul Carrubba is an attorney with the law firm of Adams and Reese LLP. His primary focus is on Banking Law and legal issues dealing with payment system fraud. He is a member of the faculty of the Alabama School of Banking and the BAI's Graduate School of Bank Operations and Technology. Mr. Carrubba is the author of five books including: Revised UCC Article 3 and 4, A Banker's Guide to Checks and Principles of Banking.

  This program was recorded in its entirety in November 2012. The CD-ROM includes program slides, materials (if available) and follow-up Q & A document.

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  • Model: cd_depositagree1112
  • Manufactured by: Glia Group, Inc.

This product was added to our catalog on Tuesday 25 September, 2012.

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