Commercial law / by William D. Warren, Steven D. Walt.
2011
KF888 .J67 2011 (Map It)
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Title
Commercial law / by William D. Warren, Steven D. Walt.
Published
New York : Foundation Press Thomson/West, 2011.
Call Number
KF888 .J67 2011
Edition
Eighth edition.
ISBN
9781599417851 (hbk.)
1599417855 (hbk.)
1599417855 (hbk.)
Description
xxxix, 1,086 pages ; 26 cm.
System Control No.
(OCoLC)696604952
Bibliography, etc. Note
Includes bibliographical references (pages iii-iv) and index.
Series
Record Appears in
Added Author
Table of Contents
Preface
i
Acknowledgments
iii
Summary of Contents
v
Table of Cases
xxvii
pt. I
Secured Transactions in Personal Property
ch. 1
Creating A Security Interest
1
A.
Why Secured Credit?
1
1.
Rights of Unsecured Creditor
2
2.
Rights of Secured Creditor
4
3.
Is Secured Credit Efficient or Fair?
5
Problem
5
B.
Introduction to Article 9
9
1.
Historical Note
9
2.
1962 Article 9
10
3.
Article 9 Revision
10
4.
Working Definitions
12
C.
Attachment
13
1.
The Security Agreement
13
Problems
14
2.
The Composite Document Rule
15
In re Bollinger Corp
15
Note
21
Problems
22
3.
Description of Collateral
23
In re Grabowski
23
Problems
28
4.
After-Acquired Collateral
30
a.
Under 9-204(a)
30
In re Filtercorp, Inc.
30
b.
Under 9-204(b)
34
5.
Proceeds
36
Problems
38
6.
Value and Rights in Collateral
38
a.
Value
38
Problem
39
b.
Rights in Collateral
39
Swets Motor Sales, Inc. v. Pruisner
40
Note
44
ch. 2
Perfection
45
A.
Introduction
45
Problem
47
B.
Perfection by Filing
47
1.
Notice Filing
47
Problems
49
2.
Sufficiency of Financing Statement
50
Problems
51
In re Hergert
52
Note
58
3.
Financing Statement Authorized by Debtor
58
Problems
59
4.
Indication of Collateral
59
a.
Original Collateral
59
ProGrowth Bank, Inc. v. Wells Fargo Bank, N.A.
61
Note
66
Problem
67
b.
Proceeds
67
Problem
68
5.
Name of Debtor
69
a.
Basic Rules
69
b.
Minor Errors Rule
70
(1).
Trade Names
70
Problem
70
(2).
Search Logic Issues
71
Pankratz Implement Co. v. Citizens National Bank
72
Notes
84
6.
Post-Filing Changes
86
a.
Transfer of Collateral
86
Problem
87
b.
Name Change
88
Problem
88
c.
Change in Business Structure
88
(1).
Pre-Revision Authorities
89
(2).
"New Debtor" under Article 9
90
Problem
91
C.
The Filing System
92
1.
Central Filing
92
2.
Kinds of Records Filed
93
a.
Financing Statement Records
93
Problems
94
Problem
96
b.
Safe Harbor Form
96
3.
When Filing Becomes Effective
97
a.
Filing Office Indexing Errors
97
Problem
97
b.
Duty of Filing Office to Accept or Reject
98
D.
Perfection by Possession
99
1.
Possession by Agent
99
In re Rolain
99
Notes
102
2.
Possession by Bailee
103
Problems
104
E.
Perfection by Control
105
F.
Security Interests in Consumer Goods
106
1.
Consumer Transactions under Article 9
106
2.
Perfection of Security Interests in Consumer Goods
108
Problems
109
G.
Choice of Law
110
1.
Location of Debtor Governs Tangible and Intangible Collateral
110
2.
Location of the Debtor
112
3.
Goods Covered by Certificate of Title
114
a.
The Basic Rules of Perfection
114
b.
What Law Governs Perfection?
115
Meeks v. Mercedes Benz Credit Corp
115
Notes
117
c.
Change in Debtor's Location
117
In re Baker
118
Notes
120
4.
Review Problems on Choice of Law
120
Problems
120
ch. 3
Priority
123
A.
Introduction
123
B.
The First-to-File Rule
124
1.
Conflicting Security Interests
125
Problems
125
2.
Future Advances
126
Problems
127
Problem
128
3.
Financing Statement as an Umbrella
129
Problem
129
4.
Position of First-to-File Secured Party
132
5.
Operating Under the First-to-File Rule
133
Problems
134
C.
Purchase-Money Priority
136
1.
Collateral Other Than Inventory
136
a.
Purchase-Money Security Interests
136
Brodie Hotel Supply, Inc. v. United States
137
Notes
140
Problems
141
b.
The Transformation Rule
143
2.
Inventory
145
a.
Requirements for Purchase-Money Security Interest in Inventory
145
Problem
146
Southtrust Bank v. Borg-Warner Acceptance Corp.
147
Notes
150
b.
Consumer Goods Exception in 9-103(h)
153
D.
Lien Creditors
154
1.
Conflict with an Unperfected Security Interest
154
Problems
154
2.
Conflict with an Future Advance
154
E.
Buyers and Lessees
156
1.
Buyers and Lessees of Non-Inventory Goods
156
2.
Buyers and Lessees of Inventory Goods
157
a.
Buyers in the Ordinary Course of Business
157
Problems
157
b.
Goods Subject to Certificate of Title Acts
158
c.
Waiver
160
3.
Buyers of Consumer Goods
161
Problem
161
4.
When Does a Buyer Buy?
161
5.
Double Debtors
162
Bank of the West v. Commercial Credit Financial Services, Inc.
163
Note
168
F.
Rights to Payment
169
1.
Scope of Article 9
170
2.
Recordering of Rights to Payment in Article 9
170
a.
The New Definitions
170
b.
Sale of Rights to Payment
172
In re Commercial Money Center, Inc.
174
Notes
188
3.
Effect of Sales of Receivables: The Octagon Heresy
190
G.
Accounts and General Intangibles
191
1.
Priority in Proceeds
191
Problems
192
2.
Section 9-309(2) Exception
193
In re Tri-County Materials, Inc.
193
Notes
196
H.
Chattel Paper and Instruments
197
1.
Introduction
197
Rex Financial Corp. v. Great Western Bank & Trust
198
2.
"Merely As Proceeds"
201
3.
Instruments
205
4.
Review Problems
206
Problems
206
I.
Deposit Accounts
207
1.
Introduction
207
2.
Priority Rules
210
a.
Control
210
b.
Security Interests in Deposit Accounts as Proceeds of Other Collateral
212
Problem
213
c.
Security Interests in Deposit Accounts as Original Collateral
213
Problem
214
d.
Critique
214
J.
Cash Proceeds
217
1.
Priority
217
a.
Pre-Revision Background
217
HCC Credit Corp. v. Springs Valley Bank & Trust
218
Notes
224
b.
Transferees of Funds under Section 9-332
226
Problems
227
Notes
227
c.
Transferees of Instruments under Section 9-330(d)
228
2.
Lowest Intermediate Balance Rule
229
Chrysler Credit Corp. v. Superior Court
230
Notes
234
Problem
236
K.
Federal Tax Liens
236
1.
Creation and Enforceability of Federal Tax Liens
238
In re Spearing Tool and Manufacturing Co., Inc.
239
Note
242
2.
The FTLA's General Priority Rule
244
Problems
245
3.
[§] 6323(c)-(d)'s Exceptions: Post-Lien Transactions
246
Problems
248
4.
PMSIs and Post-Lien Proceeds
248
Problem
250
ch. 4
Default and Enforcement
251
A.
Introduction
251
B.
Default
252
1.
Meaning of Default
252
2.
Waiver and Estoppel
254
Moe v. John Deere Co.
254
Notes
260
Problem
261
C.
Enforcement
261
1.
Cumulative Remedies
261
Okefenokee Aircraft, Inc. v. Primesouth Bank
263
Notes
266
2.
Repossession
266
a.
Self-Help Repossession
266
Problem
267
b.
Breach of Peace
267
Problem
269
Williams v. Ford Motor Credit Co.
269
Notes
273
Problem
274
c.
Judicial Action
275
Cla-Mil East Holding Corp. v Medallion Funding Corp.
276
Notes
277
3.
Disposition of Collateral
278
a.
Notification Before Disposition
279
(1).
Notification Medium: Mail vs. Internet
279
Problem
280
Moore v. Wells Fargo Construction
281
Notes
286
Problem
286
(2).
Public or Private Sale
286
(3).
Marshaling
288
b.
Commercially Reasonable Disposition
289
General Electric Capital Corp. v. Stelmach Construction Co.
290
Note
296
Problem
298
c.
Liability for Deficiency
298
(1).
Nonconsumer Transactions
298
(2).
Consumer Transactions
299
d.
Section 9-615(f)
301
Problems
302
e.
Transfer Statements
303
4.
Secondary Obligors
304
Problem
306
5.
Acceptance of Collateral in Satisfaction of Debt
306
Problem
307
Problem
309
6.
Effect of Disposition or Acceptance on Third Parties
310
a.
Transferees
310
Problem
310
b.
Junior Security Interests or Liens
310
(1).
Dispositions
310
Problem
311
(2).
Acceptance in Satisfaction
312
7.
Collection of Rights to Payment
313
Major's Furniture Mart, Inc. v. Castle Credit Corp., Inc.
315
Notes
321
8.
Redemption
323
ch. 5
Leases and Consignments
325
A.
Leases
325
1.
Lease with Option to Purchase or Renew
327
a.
The Bright Line Test of Section 1-203
327
In re Zaleha
328
Problem
334
b.
Meaningful Residual Interest
335
Problem
338
Note: Rent-to-Own Leases
339
2.
Lease Without Option to Purchase or Renew
340
In re Pillowtex, Inc.
340
Notes
349
3.
Open-end Lease
350
In re Tulsa Port Warehouse Co.
350
Notes
353
Problems
354
B.
Consignments
355
1.
Common Law Consignments
355
2.
Consignments under Article 9
356
3.
Security Consignment Exclusion
358
Problem
358
In re Georgetown Steel Co., LLC
359
4.
Exclusion under 9-102(a)(20)(A)(iii)
366
In re Downey Creations, LLC
367
Notes
371
5.
Non-Article 9 Consignments and Non-Article 9 Law
373
Problem
373
ch. 6
Security Interests in Intellectual Property
375
A.
Introduction
375
B.
Copyrights
376
In re Peregrine Entertainment, Ltd.
378
Problem
385
Notes
386
In re World Auxiliary Power Co.
390
Notes
401
Problems
402
C.
Trademarks
402
In re Together Development Corporation
403
Notes
407
D.
Patents
407
In re Cybernetic Services, Inc.
408
Notes
416
E.
Software
418
Problem
419
ch. 7
Security Interests in Investment Securities
423
A.
Introduction
423
B.
Basic Rules
428
C.
What is a Security?
430
Note
430
D.
Certificated Securities
431
1.
Held by Owner
431
a.
Control in Pledge Transactions
432
Problems
432
NOte
433
b.
Dividends
434
Problem
434
c.
Pledgee's Duty of Reasonable Care
434
Layne v. Bank One, Kentucky, N.A.
435
Note
442
2.
Certificate in Possession of Securities Intermediary
443
a.
Control Test
443
Problems
444
Notes
445
First Nat'l Bank of Palmerton v. Donaldson, Lufkin & Jenrette Securities Corp.
448
Notes
453
b.
Asset Management Accounts
455
Problem
455
E.
Uncertificated Securities
456
1.
Mutual Funds
456
Problem
457
Note
457
In re Pfautz
458
Note
463
2.
Treasury Securities
463
ch. 8
Security Interests in Fixtures
465
A.
What is a Fixture?
465
B.
Fixture and Other Filings
466
C.
Priority
468
1.
Basic Rules
468
Problems
468
2.
Construction Mortgages
469
3.
Manufactured Homes
470
Problem
472
4.
Circular Priorities
472
Note
473
D.
Enforcement
474
Maplewood Bank and Trust v. Sears, Roebuck and Co.
475
Notes
479
ch. 9
Security Interests in Bankruptcy
483
A.
Overview of Bankruptcy
483
1.
Introduction
483
2.
Types of Bankruptcy
485
3.
Petition in Bankruptcy and the Automatic Stay
487
4.
Trustee in Bankruptcy
488
5.
Claims in Bankruptcy
489
6.
Distribution of Assets to Unsecured Creditors
489
7.
Discharge
490
B.
Secured Claims In Bankruptcy
491
1.
Meaning of Secured Claim
491
Problem
492
2.
The Automatic Stay
492
Problems
493
3.
Effect of Discharge on Secured Claims
493
Problems
495
C.
Treatment of Secured Claims in Chapter 7, 11 and 13
495
1.
Consumer Debtors
495
a.
In Chapter 7
495
Problem
497
b.
In Chapter 13
497
Thompson v. General Motors Acceptance Corp., LLC
499
2.
Business Debtors
503
a.
In Chapter7
504
b.
In Chapter 11: Confirmation
504
3.
Valuing Collateral in Bankruptcy
505
Associates Commercial Corp. v. Rash
507
Notes
514
4.
Effect of Bankruptcy on After-Acquired Property Clause
514
Problem
515
Note
515
D.
Avoidance Powers of the Trustee
516
1.
Strong Arm Clause: BC 544(a)
517
Problems
517
2.
Subrogation of Trustee under 544(b)
518
Problems
519
E.
Preferences: BC 547
520
1.
Elements of a Preference
520
2.
Basic Applications of Preference Law
521
Problems
521
3.
Why Preference Law?
522
4.
Effect of Avoidance
523
Problem
524
5.
Preference Period
524
6.
Transfers to or for Benefit of a Creditor
525
a.
Transfer of Debtor's Property
525
Problem
525
b.
To or for the Benefit of a Creditor
526
7.
Conntemporaneous Exchanges
526
Problems
527
8.
Ordinary Course Payments
528
In re National Gas Distributors, L.L.C.
529
Note
537
9.
Floating Lien as a Preference
537
Problem
539
10.
False Preferences: Delayed Perfection of Security Interests
540
F.
Fraudulent Transfers: BC 548
542
1.
Basic Rules
42
a.
Actual Fraud
542
BC 548 (a)(1)
542
b.
Constructive Fraud
543
2.
Reasonably Equivalent Value
544
a.
Indirect Benefit
544
In re Northern Merchandise, Inc.
544
b.
Leveraged Buyout
548
Problems
548
c.
Securitization
549
Problem
549
ch. 10
Letters of Credit
551
A.
Introduction
551
B.
Sources of Letter of Credit Law
555
C.
Formal Requirements
557
1.
Duration
557
Problem
557
Note
558
2.
Form
558
Wichita Eagle and Beacon Publishing Co., Inc. v. Pacific National Bank of San Francisco
559
Notes
561
Problems
562
D.
Issuer's Duty to Honor or Dishonor
564
1.
The Strict Compliance Standard
564
Carter Petroleum Products, Inc. v. Brotherhood Bank & Trust Co.
565
Notes
573
2.
Notice of Discrepancies: Waiver and Preclusion
577
Problem
578
Note
580
Problems
581
3.
Issuer's Right to Reimbursement and Other Remedies
583
a.
Reimbursement
583
b.
Standard of Compliance
584
c.
Subrogation, Restitution and Breach of Warranty
585
Ochoco Lumber Co. v. Fibrex & Shipping Co., Inc.
586
Note
591
Note: Restitution and Breach of Warranty
592
Problem
594
4.
Damages for Wrongful Dishonor
594
Problems
595
E.
Forgery and Fraud
597
Levin v. Meagher
598
Notes
606
Problem
609
F.
Transfer, Assignment and Security Interests
610
1.
Transfer and Assignment
610
2.
Security Interests
613
3.
Letters of Credit as Supporting Obligations
615
G.
Letters of Credit in Bankruptcy
617
Form. Letter of Credit Application and Agreement
619
ch. 11
Negotiability and Holders in Due Course
627
A.
Introduction
627
B.
Concept of Negotiability
628
1.
Historical Origin
628
2.
Merger Doctrine
631
a.
Negotiation and Transfer
631
(1).
Negotiation
631
(2).
Transfer
633
Problems
633
d.
Discharge
634
Problem
634
Section 3-602
635
Problem
636
3.
Merger Doctrine and Securitization
637
In re Hwang
638
Notes
642
C.
Formal Requisites of Negotiable Instruments
644
D.
Holder in Due Course: Freedom from Claims and Defenses
648
Problem
648
1.
Claims of Ownership
649
Problem
650
2.
Ordinary Defenses
650
3.
Real Defenses
651
4.
Claims in Recoupment
651
E.
Requirements for Holder in Due Course
651
Section 3-302
651
1.
Good Faith and Notice
652
Kaw Valley State Bank & Trust Co. v. Riddle
653
Note
660
Maine Family Federal Credit Union v. Sun Life Assurance Co.
660
Notes
670
2.
Overdue or Irregular Instruments
671
Problem
671
3.
Holder in Due Course in Consumer Transactions
673
a.
Introduction
673
b.
The Legislative Response
674
(1).
Consumer Credit Sales
674
(a).
State Law
674
(b).
Federal Law
675
(2).
New Subsection 3-305(e)
676
4.
Transactions with Fiduciaries
677
a.
Why Section 3-307?
677
Jelmoli Holding v. Raymond James Financial Services
678
Note
682
b.
NOtice of Breach of Fiduciary Duty
683
Problem
683
Smith v. Olympic Bank
683
Note
686
Note: Uniform Fiduciaries Act
688
5.
Value
688
a.
Introduction
688
Problems
689
b.
Rights of Depositary Bank in Deposited Check
690
Problem
692
Note
692
Form: Promissory Note---Fixed Maturity
694
Form: Demand Note
696
ch. 12
Liability of Parties to Negotiable Instruments
699
A.
Liability of Maker
699
Problem
699
B.
Drawers, Drawees and Acceptors
700
Problems
700
Problem
703
C.
Liability of Indorser
704
Problems
704
Drafts
705
Notes
705
D.
Liability of Transferor
706
Problem
706
E.
Cashier's Checks and Teller's Checks
707
1.
Use in Payment of Obligations
708
Problem
709
2.
Payment with Notice of Adverse Claim
709
a.
Right to Stop Payment
709
Problem
710
b.
Issuing Bank Delays Payment
711
Problem
712
3.
Issuing Bank's Right to Raise Own Claims or Defenses
712
Problem
713
4.
Lost Instruments
713
a.
Lost Instruments under Section 3-309
713
Problem
714
Note
714
b.
Lost Cashier's, Teller's or Certified Checks under Section 3-312
715
Diaz v. Manufacturers Hanover Trust Co
715
Problems
718
F.
Accommodation Parties
719
1.
Liability of Accommodation Party and Rights Against Accommodated Party
719
a.
Accomodated Party in Individual
719
Problem
719
Problem
721
b.
Accommodated Party is Business Organization
721
Plein v. Lackey
722
2.
Suretyship Defenses
726
G.
Signatures by Representatives
728
1.
Liability of Agent on Notes
729
Problems
729
2.
Liability of Agent on Checks
730
Problem
730
H.
Accord and Satisfaction
730
ch. 13
Payment Systems: Checks and Cards
733
A.
Check Collection
733
1.
Time Check Is Paid by Payor Bank
734
a.
The Midnight Deadline
735
Section 4-104(a)
735
Section 4-301
735
Section 4-302
736
Section 4-301(d)
736
Problems
736
Blake v. Woodford Bank & Trust Co.
739
Notes
744
b.
What is a Payor Bank?
746
c.
Check Kiting
747
d.
Effect of Regulation CC on the Midnight Deadline
749
U.S. Bank N.A. v. HMA, L.C.
750
Note
753
2.
Right of Collecting Bank to Revoke Settlement on Dishonored Check
754
Essex Construction Corp. v. Industrial Bank of Washington, Inc.
754
Note
757
3.
Check Encoding
758
Problem
759
Note: Misencoding or Late Return?
759
4.
Electronic Presentment
761
a.
Under UCC
761
b.
Under Federal Law: "The Check 21 Act"
764
5.
Funds Availability and Regulation CC
767
a.
Funds Availability
769
b.
Check Collection and Return
770
B.
Credit and Debit Cards
772
1.
Introduction
772
a.
Credit Cards
772
(1).
How Credit Cards Function
772
(2).
The Perils of Success
775
b.
Debit Cards
776
2.
Liability for Unauthorized Use of Cards
778
a.
Credit Cards
778
Section 1643
779
Problems
779
b.
Debit Cards
780
Problem
781
3.
When Is Use Authorized?
781
Minskoff v. American Express Travel Related Services Co., Inc.
782
Notes
788
Problem
789
4.
Assertion of Cardholder Defenses
789
Section 1666i
790
Problem
791
Citibank (South Dakota) v. Mincks
792
Notes
804
5.
Internet Fraud
805
Problem
805
ch. 14
Payment Systems: Electronic Transfers
809
A.
Electronic Funds Transfers under Article 4A
809
1.
The Basic Transactions Covered by Article 4A
809
2.
Payment Orders
813
Trustmark Insurance Co. v. Bank One, Arizona, NA
813
3.
Acceptance of Payment Order
817
Problem
818
4.
Receiver Finality
819
a.
Cancellation
819
Aleo International, Ltd. v. Citibank
819
Notes
820
b.
Amendment
822
Problem
822
5.
The "Money-Back Guarantee"
823
6.
Garnishment
824
Note: Article 4A and Common Law Principles
825
7.
Erroneous Execution of Payment Orders
826
a.
Sending Bank's Errors
826
b.
Discharge-for-Value Rule
827
8.
Failure of Receiving Bank to Execute Payment Order
828
Problems
829
Note
830
9.
Fraudulent Payment Orders
830
Problems
832
10.
Incorrectly Identified Beneficiary
834
Problem
834
Corfan Banco Asuncion Paraguay v. Ocean Bank
835
Note
838
11.
Bank-Customer Agreement
839
Regatos v. North Fork Bank
839
Note
844
B.
Other Electronic Funds Transfers
845
1.
Electronic Fund Transfers Act
845
2.
Automated Clearing House (ACH)
847
a.
Direct Deposits and Payments
847
b.
Check Conversion
848
c.
What Law Governs ACH Transfers?
849
d.
Digital Checks
850
3.
Internet Payments
851
a.
Payments Through Online Payment Services
851
b.
Online Banking and Bill Paying
852
4.
Stored Value or Prepaid Cards
854
5.
Uniformity and Diversity in Payment Systems
857
ch. 15
Fraud, Forgery, and Alteration
861
A.
Forgery
861
1.
Allocation of Loss between Customer and Payor Bank
861
a.
Introduction
861
b.
Negligence of Customer Contributing to Forgery
862
Thompson Maple Products, Inc. v. Citizens National Bank
863
Notes
867
Problems
868
c.
Failure of Customer to Report Forgery
868
Espresso Foma Corp. v. Bank Of America, N.A.
870
Notes
877
Problems
878
Note: Fraud Prevention Measures
879
d.
Validity of Contractual "Cutdown" Clauses
880
National Title Insurance Corp. Agency v. First Union National Bank
881
Note
885
2.
Right of Payor Bank to Recover Mistaken Payment of Check
885
a.
Forged Checks
885
Problem
887
b.
Forged Indorsement
888
Problem
888
c.
Alteration
888
(1).
Complete Instruments
888
(2).
Alteration or Forgery?
890
Chevy Chase Bank, F.S.B. v. Wachovia Bank, N. A.
890
3.
Incomplete Instruments
894
Secton 3-115(a)
894
d.
Remotely Created Checks
895
e.
Overdrafts
897
3.
Conversion Actions Regarding Checks Bearing Forged Indorsement
898
a.
Action by Payee
898
(1).
Introduction
898
Problem
898
(2).
Delivery of Chech to Payee
900
(3).
Liability of Depositary Bank as Agent for Collection
901
(4).
Unauthorized Indorsement
901
Problem
902
(5).
Forgery by Entrusted Employee of Payee
902
b.
Action by Drawer
904
Stone & Webster Engineering Corp. v. First National Bank & Trust Co.
905
Problem
908
4.
Impostors and Fictitious Payees
909
a.
Intent of Issuer
909
b.
Impostors
911
Problems
911
Title Insurance Co. of Minnesota v. Comerica Bank-California
912
Note
915
c.
Fictitious Payees
916
5.
The Double Forgery
918
Gina Chin & Associates, Inc. v. First Union Bank
918
Note
920
6.
Payroll Padding
921
7.
Allocation of Loss By Contract
922
Jefferson Parish School Board v. First Commerce Corp.
923
Problem
925
Note
925
B.
Restrictive Indorsements
926
Problem
927
State of Qatar v. First American Bank
928
Problem
932
ch. 16
The Bank-Customer Relationship
935
A.
Introduction
935
B.
Stop-Payment Orders
936
1.
Proving Loss under 4-403(c)
937
2.
Operational Issues
940
Problems
940
Note: Postdated Checks
941
C.
Section 4-303 and the "Four Legals"
942
1.
Claims Affecting the Customer's Account
942
2.
Priority Rules of Section 4-303
944
W & D Acquisition, LLC v. First Union Nat'l Bank
944
Problem
948
D.
Wrongful Dishonor
949
Loucks v. Albuquerque National Bank
950
Notes
956
E.
The Bank-customer Agreement
961
1.
Disclosure: The Truth-in-Savings Act
961
2.
"Freedom of Contract" Under Section 4-103(1)
964
Problems
966
3.
Service Charges and Fees
968
a.
Deposit Charges and Fees
968
(1).
NSF Fees and High-to-Low Posting
968
(2).
Overdraft Fees
970
(3).
Potential Legislation
970
b.
Preemption
971
(1).
Class Actions
971
Perdue v. Crocker Nat'l Bank
971
Notes
975
(2).
Federal Preemption As the Solution
975
Problem
976
3.
A Chink in the Federal Preemption Wall
978
c.
Mandatory Arbitration with Waiver of Class Action or Arbitration
979
(1).
Arbitration
979
(2).
Waiver of Class Actions
981
Chalk v. T-Mobile USA, Inc.
982
Note
990
F.
The Credit Card Act of 2009
991
1.
Limitations on Interest and Charges before the Credit Card Act
991
2.
Limitations on Annual Percentage Rates (APR) and Charges and Fees Under the Credit Card Act
992
3.
Payments
994
4.
Minors and Students
996
G.
Debit Cards and ATMs
997
Appendix I
Accounts Receivable/Loan Agreement
999
Appendix II
Lockbox Agreement
1033
Appendix III
Promissory Notes
1039
Index
1047