Legal Seminar, Chicago, IL

Acceptance of Payment Order in Good Faith

Good Faith: Elements

 “Good faith” is defined as “honesty in fact and the observance of reasonable commercial standards of fair dealing.” Experi-Metal, Inc. v. Comerica Bank  “Observance of reasonable commercial standards of fair dealing” is an objective analysis. UCC § 1-201 cmt. 20. If “reasonable commercial standards of fair dealing” required a bank to act, then it should act