National Check Professional (NCP) Certification Practice Test 2026 – All-In-One Resource to Master Your Certification!

Article 4 of the Uniform Commercial Code (UCC) primarily deals with bank deposits and collections. This article establishes the rules and regulations governing the relationship between banks and their customers, as well as the procedures for the collection of checks and other negotiable instruments.

Under this article, several critical aspects are covered, including the responsibilities of banks when handling deposits, the timing of funds availability for deposited items, and the process for the transfer of funds through various methods. The emphasis in Article 4 is on the operations of financial institutions and their treatment of checks, which directly relates to how transactions involving bank deposits and collections are conducted.

While negotiable instruments, fund availability, and electronic transfers are relevant to the context of banking and financial transactions, they are governed by different articles or sections within the UCC. Article 3, for instance, focuses on negotiable instruments, while fund availability is outlined under Article 4A. Thus, the focus on bank deposits and collections distinctly identifies why this is the correct answer.