Life Insurance

BANKINGBANKING AND LENDING LAWSections within this essay:• Background• Bank Transactions- Checks and Other Negotiable Instruments- Checking Accounts- Funds Transfers- Letters of Credit- Secured Transactions• Federal Reserve System• Insurance of Deposits• Interest Rates Charged by Banks• Truth in Lending• Usury Laws• Crimes Related to Banks and Banking• State Laws Governing Banks, Banking, andLending• Additional Resources
BackgroundThe law governing banks, bank accounts, and lending in the United States is a hybrid of federal andstate STATUTORY law. Consumers and businesses may establish bank accounts in banks and savings associations chartered under state or federal law. The law under which a bank is chartered regulates that particular bank. A mix of state and federal law, however, governs most operations and transactions by bank customers.
Article 3 of the UNIFORM COMMERCIAL CODE, as adopted by the various states, governs transactionsinvolving negotiable instruments, including checks.