Part 5 governs documentary drafts. These are checks or other types of drafts that will only be honored if certain papers are first presented to the payor of the draft. Regulation J of the Federal Reserve comes into effect. Regulation CC governs extensively the availability of funds in a depositor's account and the process involving checks dishonored due to non-payment. The Expedited Funds Availability Act limits the time that a depository bank can delay before making the amount of a deposited check available for withdrawal.
Checks are negotiable instruments.
As such, sections of Article 3 of the Uniform Commercial Code govern the relationship between parties who receive and transfer checks. See also Negotiable Instruments . The banking crisis of the 1930's led to the development of federal insurance for deposits administered by the Federal Deposit Insurance Corporation. Funding for the program comes from premiums paid by member institutions. See Negotiable Instruments .