Loyola University Chicago

School of Law

Courses D - H

581: Electronic Payment Systems and Commercial Paper

Credit Hours



In this digital, global age, how does modern banking and finance work so that payments can be made, funds transferred, and money borrowed? What is the law governing your credit or debit card, phone “apps” for point-of-sale payments, ATM machines, direct deposits into your bank account, promissory notes and checks, wire transfers, letters of credit, and more methods for moving funds? Modern payment systems exist within an evolving scheme of banking and finance. They depend on networks of laws, regulations, customs, and agreements that balance the speed of transferring funds domestically and internationally against the risks of error and fraud. As such, they pose provocative questions of consumer protection and national security.  They have adapted older methods of banking and payment to the computer revolution. But, they have gone beyond traditional practices to create new ways for funds to be moved locally, nationally, and around the world. This class allows you to master the law governing these and older systems to effectively advise clients. It delves into provisions of the Uniform Commercial Code affecting negotiable instruments, electronic funds transfer, and (if time allows) letters of credit (Articles 3, 4, 4A, and 5); the role of institutions such as the Federal Reserve; federal legislation typified by the Electronic Fund Transfer Act, the “Check 21” Act, and the Truth in Lending Act; federal regulations affecting banking and funds transfers, such as Regulations CC, E, and J; and, critical international banking practices and principles.