What does Uniform Commercial Code Article 4A specifically govern?

Uniform Commercial Code Article 4A specifically governs wholesale credit transfers, which are typically large, batch-processed, and often used in commercial settings for the transfer of funds between financial institutions or businesses. Article 4A outlines the rights, responsibilities, and liabilities of the parties involved in these transactions, specifically focusing on the processes involved in making such transfers, ensuring that transactions are conducted efficiently and securely.

This article is crucial for providing a regulatory framework that includes the mechanics of payment systems, the methods of initiating credit transfers, and the roles of banks and other financial institutions. Understanding these provisions is essential for those in the payments industry to effectively manage and mitigate risks associated with funds transfer, particularly in a wholesale context.

This distinguishes it from the other options, which cover different aspects of the commercial legal framework. For example, negotiable instruments are addressed under a different article, consumer transaction regulations pertain to consumer protection laws (not exclusively in wholesale transactions), and funds settlement procedures, while relevant, are broader and typically fall under various operational guidelines rather than the specific wholesale nature addressed in Article 4A.