Foreign Currency Instruments Under the Uniform Commercial Code
The unsettled economic conditions of recent years have reintroduced a special risk in commercial paper and banking transactions which cross international boundaries. The basic problem is that an instrument made payable in a foreign currency or a bank deposit of foreign currency may fluctuate greatly in value while the instrument or deposit is in the process of collection or exchange. Both Article Three and Article Four of the Uniform Commercial Code contain provisions which deal with foreign currency instruments but these have been little-used in the past. In the expectation that these "sleeper" provisions may soon be appearing in the banking law cases, this article attempts to identify and explain these Code provisions for the benefit of those attorneys who may not be familiar with the area.