TAG

Funds transfer

Wire, deposit, and account liability rules.

FIN-08 · 01

Wire Transfer Losses Under UCC Article 4A: Who Bears the Fraud

8 MIN · FIN

Article 4A does not ask who was at fault. It asks whether the bank and the customer agreed a commercially reasonable security procedure and whether the bank followed it. This brief walks that analysis and its exits.

Article 4A allocates unauthorised payment-order loss through the security procedure: an order verified under a commercially reasonable procedure can bind the customer.
A customer can shift the loss back by proving the order did not come from anyone entrusted with, or who obtained access through, the customer's own systems.
Consumer transfers governed in any part by the Electronic Fund Transfer Act are excluded from Article 4A, so the two regimes rarely overlap.

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FIN-09 · 02

Deposit Insurance and Pass-Through Coverage for Pooled Accounts

8 MIN · FIN

Pass-through coverage turns one pooled deposit into many insured claims — but only if titling, records, and the underlying relationship all hold. This brief sets out the conditions and the failure modes.

Coverage runs per depositor, per insured bank, per ownership category, at a standard maximum of $250,000; pooling does not by itself increase or reduce it.
Pass-through requires custodial titling at the bank, records identifying each true owner and interest, and a genuine disclosed custodial relationship.
Deposit insurance responds only to the failure of the insured bank, not to the failure of a fintech, program manager, or ledger provider.

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