Drafts are
explicitly established as a legal method for payment as provided in: Uniform Commercial
Code, Title 1, Section 1-201 [39] and Title 3, Sections 3-104, 3-403, 2-403 Code of
Federal Regulations, Title 12 Chapter II, Part 210 Regulation J, Federal Reserve Bank,
Part 2, Sections 4a-201 to 4a-212. The Federal Trade Commission in late 1995 proposed
rules that became law in January 1996 (Regulation 16CFR Part 310) that requires businesses
who take checks over the phone to have a "verification" procedure in place.
Similar laws have been passed recently in Canada.