Examines the policy of the Uniform Commercial Code statute on returned checks.
Non-Sufficient Funds (NSF) checks, as well as other matters, such as the sale of goods, credit, and bank transactions, are covered by the model statute known as the Uniform Commercial Code, or ?U.C.C.? This paper discusses the U.C.C. code that is the primary source of law regarding the policies that American states can pursue regarding a non-sufficient funds check. The paper provides an example of how the code was applied to a case in Connecticut.
“The Universal Commercial Code in itself, and as adopted by various states, is an extremely powerful tool in clarifying the rights and responsibilities of commercial trade and business. However, its application, like all legal applications, can be quite complex, as is shown in Tuttle vs. Equifax. Further, it should be remembered that, although the UCC is, in name, Universal, different states can determine which of its provisions they want to adopt, and they may also amend those provisions. For this reason, Connecticut law can differ significantly from the law governing similar non sufficient funds issues in other states.”