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Special Student Contribution


In 1990 the National Conference of Commissioners on Uniform State Laws and the American Law Institute approved comprehensive changes to Articles 3 and 4 of the Uniform Commercial Code ("U.C.C."). These changes will greatly impact consumer transactions and alter the relationship between banks and their customers. As of December 1994, thirty-six states had adopted the revised Articles. While most states adopted them as written, some have made changes which provide the consumer with greater protection. The Georgia General Assembly will soon address the issue of whether to adopt the new Articles. At issue is whether the revisions warrant added consumer protection.

Part Two of this Article examines the proposed changes in Article 4 that have the greatest impact on consumers and explores the ways other states have dealt with the consumer issues arising from those changes. Part Three addresses the standards that govern the customer-bank relationship and- discusses whether legislative amendments to Article 4 are really necessary to protect consumers.