Which article of the Uniform Commercial Code governs check collection processes?

The correct choice is UCC 4, which governs the collection process of checks and other items considered to be negotiable instruments. This section of the Uniform Commercial Code addresses the duties and rights of parties involved in the collection of these instruments, including the roles of the collecting bank and the responsibilities they undertake when handling checks. UCC 4 provides the framework for both the negotiation and the collection process, detailing how banks must handle and process checks, the timeline for collection, and the liability of the parties.

Understanding this is crucial for anyone involved in the payments industry, as it lays the foundation for the proper management of check transactions and the legal obligations that accompany them. This section helps clarify the responsibilities of the parties in a check transaction, which is vital for maintaining efficiency and compliance in financial operations.