1. Joint Meeting of UCC and Electronic Banking Payments Subcommittees
ABA Business Law Section
Fall Meeting
September 8, 2016
Presented by
Joe Torregrossa, Jessie Cheng, Alaina Gimbert, Paul Holbrook, and stephen krebs

2. Topics
Wire
ACH
Check
Deposit Accounts
Block chain
CFPB
AML

3. Wire
Receivers of Sabena SA v. Deutsche Bank A.G., 36 N.Y.S.3d 95 (N.Y. App. Div. 1st Dep’t 2016)
Article 4A applies to funds transfer blocked by an intermediary bank under OFAC sanctions program
Funds transfer blocked for more than 5 business day was canceled under UCC § 4A-211, which triggered obligation of Deutsche Bank to refund blocked funds under UCC § 4A-402
Holding Deutsche Bank liable to intended beneficiary for conversion for refunding sender as required under UCC § 4A-402 would have exposed it and other similarly situated intermediary banks to dual liability

4. Wire
Green v Mizuho [ag]

5. Wire
Banco del Austro v Wells Fargo [ph to cover/ ag will fill out]

6. ACH
NACHA Third Party Sender Registration [sk]

7. Check
Deposit Reconciliation [sk]

8. Check
Zhou v Citibank [ph]

9. Deposit Accounts
In re Tusa-Expo Holdings, Inc., 811 F.3d 786 (5th Cir. 2016)
Court held that UCC § 9-332(b) “ensures that the funds in a deposit account remain unencumbered by a security interest in the account itself” (emphasis original).
Accordingly, transferee of funds transferred out of lockbox account received funds subject to continuing security interest
Good article on this case:
Jason J. Kilborn , A Deposit Account is not a Box of Money, The Transactional Lawyer (Commercial Law Center), Aug. 2016, at 1, available at (last visited September 2016).

10. Block Chain
Dao [jc]

11. CFPB Payday Lending Proposal [sk]
Prepaid Rule [sk – if final rule out]

12. AML
FBME Bank Ltd. v. Lew
July 2015: FinCEN issues final rule prohibiting U.S. financial institutions from holding correspondent accounts for FBME
August 2015: Court preliminarily enjoins final rule for potential procedural defects under APA
November 2015: Court stays litigation to permit FinCEN to issue new final rule and attempt to cure potential defects; FinCEN issues new proposed rule
March 2016: FinCEN issues new final rule (effective July 2016)
July 2016: Court stays implementation of new final rule pending judicial review