Which article of the Uniform Commercial Code governs wholesale electronic funds transfers?

The correct answer is the article that specifically addresses wholesale electronic funds transfers, which is Article 4A of the Uniform Commercial Code (UCC). Article 4A was established to provide a comprehensive legal framework for electronic funds transfers, including the rights and obligations of the parties involved in such transactions. It outlines the rules for funds transfers initiated via electronic means, facilitating the resolution of issues related to payment orders and transfers between financial institutions.

Article 4A is particularly important for wholesale transactions because these often involve large sums and require clear guidelines for execution and liability. The article includes provisions on the effectiveness of payment orders, the timing of the transfer, and how to handle errors in processing, which are crucial for businesses engaging in large-scale financial operations.

The other articles listed do not pertain specifically to electronic funds transfers in the wholesale context. Article 2 addresses the sale of goods, Article 8 covers investment securities, and Article 9 deals with secured transactions. These articles, while crucial in their respective areas, do not provide the regulatory framework necessary for wholesale electronic funds transfers as outlined in Article 4A.