LAW 6570 - Payment Systems

Credits: 3
Max Credit (Max. 3)

Focus on the use of negotiable instruments (such as checks, drafts, promissory notes, and certificates of deposit) to document debts and to make payments. Provides an overview of the banking system, the check collection process, and the use of various commercial instruments. Topics include liability for stolen checks, forged signatures, alterations, payment to impostors, insufficient funds, stop payment orders, post-dated checks, and restrictive endorsements. In addition, the rights of good faith purchasers are examined and the use of third parties (such as guarantors, sureties, and accommodation parties) to secure obligations are discussed.