Bank Deposits and Collections and Letters of Credit

In drafting the Uniform Commercial Code, the most controversial article was that relating to bank deposits and collections. The difference in attitudes toward Article IV is best explained by the importance placed on (1) the need for speedy handling of checks, (2) consideration of the practical problems and operations in handling the tremendous volume of items that move through the ordinary commercial banks each day, and (3) the tremendous increase in the volume of these items each year.