Banking law deals with all aspects of regulations of banks. If you have an account, loan, or other dealings with a bank, commercial banking law applies to your interaction.

Both state and federal governments regulate banks. Federal law deals with banking in Title 12 of the United States Code. This covers the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC) and other federal agencies such as the Export-Import Bank and Farm Credit Administration.

On the federal level, banking is regulated by the Comptroller of the Currency, which charters banks; the Federal Reserve Board, which regulates the activities of banks; and the Federal Deposit Insurance Corporation, which insures deposits placed in banks.

On the state level, banking is covered by Article 4 of the Uniform Commercial Code, part of which has been adopted by every state (and the majority have enacted it in full). It covers checking accounts and the rights "between parties with respect to bank deposits and collections."

Here's what you need to know about banking law:

1. All banking deposits of individuals are insured up to $100,000 according to the law establishing the FDIC. Above that, depositors may have additional options through state law.

2. While there are differences in state law regarding banks, the fact that all states have adopted at least part of the Uniform Commercial Code makes regulations fairly consistent across individual states

3. Banking laws for business are regularly changing, particularly in regards to the financial instruments banks are allowed to offer customers and how those are regulated. Especially if you have complex dealings with banks, you should make sure to stay on top of banking law developments and work with a banking attorney or banking law firm.

Action Steps
The best contacts and resources to help you get it done

Educate yourself on current banking law

Make sure you are up to date on both state and federal banking laws and how they apply to your business.

I recommend: HG.org has comprehensive links to both U.S. and International Banking law resources. Cornell University offers a good overview of banking law at their Legal Information Institute website. If you are interested in a more comprehensive look at banking law for business, Sheshunoff publishes its "Guide to Commercial Banking Law," considered the standard guide for this field.

Find a good banking lawyer

Make sure you are well represented in your dealings with a bank.

I recommend: Banking law careers are some of the most specialized in law. A good banking lawyer or banking law firm is essential for any legal dealings with a bank. AllLaw.com has a list of banking attorneys divided by state. Lawyers.com gives advice on the best way to look for a banking attorney, as well as a comprehensive guide to attorneys who practice banking and finance law.

Know what the different banking regulatory agencies do

Make sure you know which federal and state agencies are dealing with your bank transactions.

I recommend: The Community Banker has links to the websites for all federal banking agencies, as well as several national banking organizations. The Banking Law Firm has a listing for all the state regulatory agencies that deal with laws and banking.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Examine the banking laws and guidelines to determine whether you need a banking lawyer, or whether a general practitioner will do.
• •  If you have a banking issue and your account has above the minimum amount covered by FDIC insurance ($100,000), you probably need a banking law specialist.
• •  Don't work with or appear before a banking regulartory agency without an attorney.