Uniform Commercial Code UCC

The UCC is a comprehensive modernization of various statutes relating to commercial transactions including sales, leases, negotiable instruments, bank deposits and collections, funds transfers, letters of credit, bulk sales, documents of title, investment securities, and secured transactions.

The Permanent Editorial Board for the UCC, a joint committee of ALI and the Uniform Law Commission, assists in attaining and maintaining uniformity in state statutes governing commercial transactions by discouraging non-uniform amendments to the UCC by the states, and by approving and promulgating amendments to the UCC when necessary. Visit the PEB page for recent PEB commentaries and other documents.

A volume of the complete text of the UCC is available for purchase from Thomson Reuters.

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    PEB Report on Application of the UCC to Selected Issues Relating to Mortgage Notes
    17 pages, 2011, #1UCCNOV11E

    This report explains the application of UCC Articles 3 and 9 to provide guidance in (i) identifying the person who is entitled to enforce the payment obligation of the maker of a mortgage note, and to whom the maker owes that obligation; and (ii) determining who owns the rights represented by the note and mortgage.

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    Amendments to UCC Article 9, Secured Transactions
    129 pages, 2010, #1UCCPFTE

    This is the final version of the amendments to Article 9 of the UCC after approval by both the ALI and the ULC.

     

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    UCC and Emerging Technologies - TD No. 1 - May 2022
    Tentative Draft No. 1
    200 pages, 2022, #1UCCITD1

    UNIFORM COMMERCIAL CODE AND EMERGING TECHNOLOGIES

    TABLE OF CONTENTS

    Reporter’s Prefatory Note to April 11, 2022 Draft  ................ 1

    ARTICLE 1

    GENERAL PROVISIONS

    Section 1-103. Construction of [Uniform Commercial Code]
    to Promote its Purposes and Policies; Applicability of Supplemental Principles of Law ........................................... 6

    Section 1-107. Section Captions .......................................... 7

    Section 1-201. General Definitions ...................................... 8

    Section 1-204. Value .......................................................... 16

    ARTICLE 2

    SALES

    Section 2-102. Scope; Certain Security and Other Transactions Excluded from this Article ............................. 16

    Section 2-106. Definitions: “Contract”; “Agreement”;
    “Contract for Sale”; “Sale”; “Present Sale”; “Conforming”
    to Contract; “Termination”; “Cancellation”; “Hybrid Transaction” ....................................................................... 21

    Section 2-201. Formal Requirements; Statute of Frauds ... 24

    Section 2-202. Final Written Expression: Parol or
    Extrinsic Evidence .............................................................. 26

    Section 2-207. Additional Terms in Acceptance or Confirmation ....................................................................... 29

    Section 2-209. Modification, Rescission and Waiver ......... 29

    Section 2-316. Exclusion or Modification of Warranties ..... 30

    Section 2-605. Waiver of Buyer’s Objections by Failure
    to Particularize .................................................................... 30

    Section 2-607. Effect of Acceptance; Notice of Breach; Burden of Establishing Breach After Acceptance; Notice
    of Claim or Litigation to Person Answerable Over .............. 31

    Section 2-609. Right to Adequate Assurance of
    Performance ....................................................................... 31

    Section 2-616. Procedure on Notice Claiming Excuse ...... 31

    Section 2-702. Seller’s Remedies on Discovery of
    Buyer’s Insolvency ............................................................. 32

    ARTICLE 2A

    LEASES

    Section 2A-102. Scope ....................................................... 32

    Section 2A-103. Definitions and Index of Definitions ......... 34

    Section 2A-107. Waiver or Renunciation of Claim or
    Right After Default .............................................................. 36

    Section 2A-201. Statute of Frauds ..................................... 36

    Section 2A-202. Final Written Expression: Parol or
    Extrinsic Evidence .............................................................. 38

    Section 2A-203. Seals Inoperative ..................................... 39

    Section 2A-205. Firm Offers ............................................... 39

    Section 2A-208. Modification, Rescission and Waiver ....... 39

    Section 2A-214. Exclusion or Modification of Warranties ... 40

    Section 2A-303. Alienability of Party’s Interest Under
    Lease Contract or of Lessor’s Residual Interest in Goods; Delegation of Performance; Transfer of Rights .................. 40

    Section 2A-309. Lessor’s and Lessee’s Rights When
    Goods Become Fixtures ..................................................... 40

    Section 2A-310. Lessor’s and Lessee’s Rights When
    Goods Become Accessions ................................................ 41

    Section 2A-401. Insecurity: Adequate Assurance of Performance ....................................................................... 41

    Section 2A-406. Procedure on Excused Performance ....... 41

    Section 2A-514. Waiver of Lessee’s Objections ................ 41

    Section 2A-516. Effect of Acceptance of Goods; Notice of Default; Burden of Establishing Default After Acceptance; Notice of Claim or Litigation to Person Answerable Over .. 42

    Reporter’s Prefatory Note to Payments Amendments ....... 42

    ARTICLE 3

    NEGOTIABLE INSTRUMENTS

    Section 3-104. Negotiable Instrument ................................ 43

    Section 3-105. Issue of Instrument .................................... 44

    Section 3-309. Enforcement of Lost, Destroyed, or Stolen Instrument .......................................................................... 45

    Section 3-604. Discharge by Cancellation or
    Renunciation ...................................................................... 46

    ARTICLE 4

    BANK DEPOSITS AND COLLECTIONS

    Section 4-207. Transfer Warranties .................................... 47

    ARTICLE 4A

    FUNDS TRANSFERS

    Section 4A-103. Payment Order ‒ Definitions ................... 47

    Section 4A-104. Funds Transfer ‒ Definitions .................... 48

    Section 4A-201. Security Procedure .................................. 50

    Section 4A-202. Authorized and Verified Payment
    Orders ................................................................................ 51

    Section 4A-203. Unenforceability of Certain Verified
    Payment Orders ................................................................. 52

    Section 4A-206. Transmission of Payment Order Through Funds-Transfer or Other Communication System .............. 56

    Section 4A-207. Misdescription of Beneficiary ................... 56

    Section 4A-208. Misdescription of Intermediary Bank or Beneficiary’s Bank .............................................................. 57

    Section 4A-210. Rejection of Payment Order .................... 58

    Section 4A-211. Cancellation and Amendment of
    Payment Order ................................................................... 59

    ARTICLE 5

    LETTERS OF CREDIT

    Section 5-116. Choice of Law and Forum .......................... 59

    ARTICLE 7

    DOCUMENTS OF TITLE

    Section 7-102. Definitions and Index of Definitions ............ 61

    Section 7-106. Control of Electronic Document of Title ...... 63

    Section 7-403. Obligation of Bailee to Deliver; Excuse ...... 66

    Section 7-504. Rights Acquired in Absence of Due Negotiation; Effect of Diversion; Stoppage of Delivery ....... 68

    ARTICLE 8

    INVESTMENT SECURITIES

    Reporter’s Prefatory Note to Article 8 Amendments ........... 69

    Section 8-102. Definitions and Index of Definitions ............ 70

    Section 8-106. Control ........................................................ 73

    Section 8-303. Protected Purchaser .................................. 74

    Section 8-501. Securities Account; Acquisition of Security Entitlement from Securities Intermediary ........................... 75

    Section 8-505. Duty of Securities Intermediary with
    Respect to Payments and Distributions ............................. 77

    ARTICLE 9

    SECURED TRANSACTIONS

    Reporter’s Prefatory Note to Article 9 Amendments ........... 78

    Section 9-102. Definitions and Index of Definitions ............ 80

    Section 9-104. Control of Deposit Account ........................ 92

    Section 9-105. Control of Electronic Chattel Paper  ........... 93

    Section 9-105. Control of Electronic Copy of Record Evidencing Chattel Paper ................................................... 94

    Section 9-105A. Control of Electronic Money. .................... 97

    Section 9-107A. Control of Controllable Electronic
    Record, Controllable Account, or Controllable
    Payment Intangible ............................................................................ 99

    Section 9-107B. No Requirement to Acknowledge or Confirm; No Duties ........................................................... 100

    Section 9-203. Attachment and Enforceability of Security Interest; Proceeds; Supporting Obligations; Formal Requisites ......................................................................... 101

    Section 9-204. After-Acquired Property; Future
    Advances .......................................................................... 102

    Section 9-207. Rights and Duties of Secured Party
    Having Possession or Control of Collateral ...................... 104

    Section 9-208. Additional Duties of Secured Party
    Having Control of Collateral ............................................. 104

    Section 9-301. Law Governing Perfection and Priority
    of Security Interests .......................................................... 107

    Section 9-306A. Law Governing Perfection and Priority
    of Security Interests in Chattel Paper
    ............................... 108

    Section 9-306B. Law Governing Perfection and Priority
    of Security Interests in Controllable
    Accounts,
    Controllable Electronic Records, and Controllable
    Payment Intangibles
    ......................................................... 111

    Section 9-310. When Filing Required to Perfect Security Interest or Agricultural Lien; Security Interests and Agricultural Liens to Which Filing Provisions Do Not
    Apply ................................................................................. 112

    Section 9-312. Perfection of Security Interests in Chattel Paper, Controllable Accounts,Controllable Electronic Records, Controllable Payment Intangibles, Deposit Accounts, Negotiable Documents, Goods Covered by Documents, Instruments, Investment Property, Letter-of-Credit Rights, and Money; Perfection by Permissive Filing; Temporary Perfection Without Filing or Transfer of Possession ....................................................................... 113

    Section 9-313. When Possession by or Delivery to
    Secured Party Perfects Security Interest Without Filing ... 116

    Section 9-314. Perfection by Control ................................ 117

    Section 9-314A. Perfection by Possession and Control of Chattel Paper .................................................................... 118

    Section 9-316. Continued Perfection of Security Interest Following Change in Governing Law ................................ 119

    Section 9-317. Interests That Take Priority Over or Take
    Free of Security Interest or Agricultural Lien .................... 121

    Section 9-326A. Priority of Security Interests in
    Controllable Account, Controllable Electronic
    Record,
    and Controllable Payment Intangible
    ............................... 123

    Section 9-330. Priority of Purchaser of Chattel Paper or Instrument ........................................................................ 124

    Section 9-331. Priority of Rights of Purchasers of Controllable Accounts, Controllable ElectronicRecords, Controllable Payment Intangibles,Instruments,
    Documents, Instruments, and Securities Under Other Articles; Priority of Interests in Financial Assets and
    Security Entitlements and Protections Against Assertions
    of Claims
    Under Article 8Articles 8 and12 ...................... 125

    Section 9-332. Transfer of Money; Transfer of Funds
    from Deposit Account ....................................................... 126

    Section 9-406. Discharge of Account Debtor; Notification
    of Assignment; Identification and Proof of Assignment; Restrictions on Assignment of Accounts, Chattel Paper, Payment Intangibles, and Promissory Notes Ineffective .. 128

    Section 9-601. Rights After Default; Judicial Enforcement; Consignor or Buyer of Accounts, Chattel Paper, Payment Intangibles, or Promissory Notes ..................................... 130

    Section 9-605. Unknown Debtor or Secondary Obligor ... 130

    Section 9-610. Disposition of Collateral After Default ...... 132

    Section 9-611. Notification Before Disposition of
    Collateral .......................................................................... 135

    Section 9-614. Contents and Form of Notification
    Before Disposition of Collateral: Consumer-Goods Transaction ....................................................................... 137

    Section 9-616. Explanation of Calculation of Surplus or Deficiency ......................................................................... 139

    Section 9-627. Determination of Whether Conduct Was Commercially Reasonable ............................................... 142

    Section 9-628. Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor .................. 142

    ARTICLE 12

    CONTROLLABLE ELECTRONIC RECORDS

    Reporter’s Prefatory Note to Article 12 ............................. 144

    Section 12-101. Title ......................................................... 150

    Section 12-102. Definitions .............................................. 150

    Section 12-103. Relationship to Article 9 and Consumer Laws ................................................................................. 152

    Section 12-104. Rights in Controllable Account,
    Controllable Electronic Record, and Controllable
    Payment Intangible ........................................................... 152

    Section 12-105. Control of Controllable Electronic
    Record .............................................................................. 158

    Section 12-106. Discharge of Account Debtor on
    Controllable Account or Controllable Payment
    Intangible .......................................................................... 164

    Section 12-107. Governing Law ....................................... 168

    ANNEX A

    TRANSITION PROVISIONS FOR 2022 AMENDMENTS TO UNIFORM COMMERCIAL CODE—EMERGING TECHNOLOGIES

    Reporter’s Prefatory Note to Annex A—Transition
    Provisions ...................................................................... 173

    PART 1

    GENERAL PROVISIONS

    Section A-101. Effective Date ........................................... 173

    Section A-102. Definitions ................................................ 174

    PART 2

    GENERAL TRANSITION PROVISION

    Section A-201. [Savings Clause.] ..................................... 175

    PART 3

    ADDITIONAL TRANSITION PROVISIONS FOR ARTICLES 9 AND 12

    Section A-301. Savings Clause ........................................ 176

    Section A-302. Security Interest Perfected Before
    Effective Date ................................................................... 177

    Section A-303. Security Interest Unperfected Before
    Effective Date ................................................................... 180

    Section A-304. Effectiveness of Actions Taken Before Effective Date ................................................................... 181

    Section A-305. Priority ...................................................... 183

    Section A-306. Priority of Claims When Priority Rules of Article 9 Do Not Apply ...................................................... 186

    Tentative Draft No. 1 contains draft amendments to Articles 1, 2, 2A, 3, 4, 4A, 5, 7, 8, and 9; draft Article 12; and transition provisions. The membership voted to approve the Tentative Draft at the 2022 Annual Meeting, subject to the discussion at the Meeting and editorial prerogative. This is a joint project with the Uniform Law Commission (ULC) that will be presented for approval at the ULC Annual Meeting in summer 2022.

    200 pages, 2022, #1UCCITD1E

    UNIFORM COMMERCIAL CODE AND EMERGING TECHNOLOGIES

    TABLE OF CONTENTS

    Reporter’s Prefatory Note to April 11, 2022 Draft  ................ 1

    ARTICLE 1

    GENERAL PROVISIONS

    Section 1-103. Construction of [Uniform Commercial Code]
    to Promote its Purposes and Policies; Applicability of Supplemental Principles of Law ........................................... 6

    Section 1-107. Section Captions .......................................... 7

    Section 1-201. General Definitions ...................................... 8

    Section 1-204. Value .......................................................... 16

    ARTICLE 2

    SALES

    Section 2-102. Scope; Certain Security and Other Transactions Excluded from this Article ............................. 16

    Section 2-106. Definitions: “Contract”; “Agreement”;
    “Contract for Sale”; “Sale”; “Present Sale”; “Conforming”
    to Contract; “Termination”; “Cancellation”; “Hybrid Transaction” ....................................................................... 21

    Section 2-201. Formal Requirements; Statute of Frauds ... 24

    Section 2-202. Final Written Expression: Parol or
    Extrinsic Evidence .............................................................. 26

    Section 2-207. Additional Terms in Acceptance or Confirmation ....................................................................... 29

    Section 2-209. Modification, Rescission and Waiver ......... 29

    Section 2-316. Exclusion or Modification of Warranties ..... 30

    Section 2-605. Waiver of Buyer’s Objections by Failure
    to Particularize .................................................................... 30

    Section 2-607. Effect of Acceptance; Notice of Breach; Burden of Establishing Breach After Acceptance; Notice
    of Claim or Litigation to Person Answerable Over .............. 31

    Section 2-609. Right to Adequate Assurance of
    Performance ....................................................................... 31

    Section 2-616. Procedure on Notice Claiming Excuse ...... 31

    Section 2-702. Seller’s Remedies on Discovery of
    Buyer’s Insolvency ............................................................. 32

    ARTICLE 2A

    LEASES

    Section 2A-102. Scope ....................................................... 32

    Section 2A-103. Definitions and Index of Definitions ......... 34

    Section 2A-107. Waiver or Renunciation of Claim or
    Right After Default .............................................................. 36

    Section 2A-201. Statute of Frauds ..................................... 36

    Section 2A-202. Final Written Expression: Parol or
    Extrinsic Evidence .............................................................. 38

    Section 2A-203. Seals Inoperative ..................................... 39

    Section 2A-205. Firm Offers ............................................... 39

    Section 2A-208. Modification, Rescission and Waiver ....... 39

    Section 2A-214. Exclusion or Modification of Warranties ... 40

    Section 2A-303. Alienability of Party’s Interest Under
    Lease Contract or of Lessor’s Residual Interest in Goods; Delegation of Performance; Transfer of Rights .................. 40

    Section 2A-309. Lessor’s and Lessee’s Rights When
    Goods Become Fixtures ..................................................... 40

    Section 2A-310. Lessor’s and Lessee’s Rights When
    Goods Become Accessions ................................................ 41

    Section 2A-401. Insecurity: Adequate Assurance of Performance ....................................................................... 41

    Section 2A-406. Procedure on Excused Performance ....... 41

    Section 2A-514. Waiver of Lessee’s Objections ................ 41

    Section 2A-516. Effect of Acceptance of Goods; Notice of Default; Burden of Establishing Default After Acceptance; Notice of Claim or Litigation to Person Answerable Over .. 42

    Reporter’s Prefatory Note to Payments Amendments ....... 42

    ARTICLE 3

    NEGOTIABLE INSTRUMENTS

    Section 3-104. Negotiable Instrument ................................ 43

    Section 3-105. Issue of Instrument .................................... 44

    Section 3-309. Enforcement of Lost, Destroyed, or Stolen Instrument .......................................................................... 45

    Section 3-604. Discharge by Cancellation or
    Renunciation ...................................................................... 46

    ARTICLE 4

    BANK DEPOSITS AND COLLECTIONS

    Section 4-207. Transfer Warranties .................................... 47

    ARTICLE 4A

    FUNDS TRANSFERS

    Section 4A-103. Payment Order ‒ Definitions ................... 47

    Section 4A-104. Funds Transfer ‒ Definitions .................... 48

    Section 4A-201. Security Procedure .................................. 50

    Section 4A-202. Authorized and Verified Payment
    Orders ................................................................................ 51

    Section 4A-203. Unenforceability of Certain Verified
    Payment Orders ................................................................. 52

    Section 4A-206. Transmission of Payment Order Through Funds-Transfer or Other Communication System .............. 56

    Section 4A-207. Misdescription of Beneficiary ................... 56

    Section 4A-208. Misdescription of Intermediary Bank or Beneficiary’s Bank .............................................................. 57

    Section 4A-210. Rejection of Payment Order .................... 58

    Section 4A-211. Cancellation and Amendment of
    Payment Order ................................................................... 59

    ARTICLE 5

    LETTERS OF CREDIT

    Section 5-116. Choice of Law and Forum .......................... 59

    ARTICLE 7

    DOCUMENTS OF TITLE

    Section 7-102. Definitions and Index of Definitions ............ 61

    Section 7-106. Control of Electronic Document of Title ...... 63

    Section 7-403. Obligation of Bailee to Deliver; Excuse ...... 66

    Section 7-504. Rights Acquired in Absence of Due Negotiation; Effect of Diversion; Stoppage of Delivery ....... 68

    ARTICLE 8

    INVESTMENT SECURITIES

    Reporter’s Prefatory Note to Article 8 Amendments ........... 69

    Section 8-102. Definitions and Index of Definitions ............ 70

    Section 8-106. Control ........................................................ 73

    Section 8-303. Protected Purchaser .................................. 74

    Section 8-501. Securities Account; Acquisition of Security Entitlement from Securities Intermediary ........................... 75

    Section 8-505. Duty of Securities Intermediary with
    Respect to Payments and Distributions ............................. 77

    ARTICLE 9

    SECURED TRANSACTIONS

    Reporter’s Prefatory Note to Article 9 Amendments ........... 78

    Section 9-102. Definitions and Index of Definitions ............ 80

    Section 9-104. Control of Deposit Account ........................ 92

    Section 9-105. Control of Electronic Chattel Paper  ........... 93

    Section 9-105. Control of Electronic Copy of Record Evidencing Chattel Paper ................................................... 94

    Section 9-105A. Control of Electronic Money. .................... 97

    Section 9-107A. Control of Controllable Electronic
    Record, Controllable Account, or Controllable
    Payment Intangible ............................................................................ 99

    Section 9-107B. No Requirement to Acknowledge or Confirm; No Duties ........................................................... 100

    Section 9-203. Attachment and Enforceability of Security Interest; Proceeds; Supporting Obligations; Formal Requisites ......................................................................... 101

    Section 9-204. After-Acquired Property; Future
    Advances .......................................................................... 102

    Section 9-207. Rights and Duties of Secured Party
    Having Possession or Control of Collateral ...................... 104

    Section 9-208. Additional Duties of Secured Party
    Having Control of Collateral ............................................. 104

    Section 9-301. Law Governing Perfection and Priority
    of Security Interests .......................................................... 107

    Section 9-306A. Law Governing Perfection and Priority
    of Security Interests in Chattel Paper
    ............................... 108

    Section 9-306B. Law Governing Perfection and Priority
    of Security Interests in Controllable
    Accounts,
    Controllable Electronic Records, and Controllable
    Payment Intangibles
    ......................................................... 111

    Section 9-310. When Filing Required to Perfect Security Interest or Agricultural Lien; Security Interests and Agricultural Liens to Which Filing Provisions Do Not
    Apply ................................................................................. 112

    Section 9-312. Perfection of Security Interests in Chattel Paper, Controllable Accounts,Controllable Electronic Records, Controllable Payment Intangibles, Deposit Accounts, Negotiable Documents, Goods Covered by Documents, Instruments, Investment Property, Letter-of-Credit Rights, and Money; Perfection by Permissive Filing; Temporary Perfection Without Filing or Transfer of Possession ....................................................................... 113

    Section 9-313. When Possession by or Delivery to
    Secured Party Perfects Security Interest Without Filing ... 116

    Section 9-314. Perfection by Control ................................ 117

    Section 9-314A. Perfection by Possession and Control of Chattel Paper .................................................................... 118

    Section 9-316. Continued Perfection of Security Interest Following Change in Governing Law ................................ 119

    Section 9-317. Interests That Take Priority Over or Take
    Free of Security Interest or Agricultural Lien .................... 121

    Section 9-326A. Priority of Security Interests in
    Controllable Account, Controllable Electronic
    Record,
    and Controllable Payment Intangible
    ............................... 123

    Section 9-330. Priority of Purchaser of Chattel Paper or Instrument ........................................................................ 124

    Section 9-331. Priority of Rights of Purchasers of Controllable Accounts, Controllable ElectronicRecords, Controllable Payment Intangibles,Instruments,
    Documents, Instruments, and Securities Under Other Articles; Priority of Interests in Financial Assets and
    Security Entitlements and Protections Against Assertions
    of Claims
    Under Article 8Articles 8 and12 ...................... 125

    Section 9-332. Transfer of Money; Transfer of Funds
    from Deposit Account ....................................................... 126

    Section 9-406. Discharge of Account Debtor; Notification
    of Assignment; Identification and Proof of Assignment; Restrictions on Assignment of Accounts, Chattel Paper, Payment Intangibles, and Promissory Notes Ineffective .. 128

    Section 9-601. Rights After Default; Judicial Enforcement; Consignor or Buyer of Accounts, Chattel Paper, Payment Intangibles, or Promissory Notes ..................................... 130

    Section 9-605. Unknown Debtor or Secondary Obligor ... 130

    Section 9-610. Disposition of Collateral After Default ...... 132

    Section 9-611. Notification Before Disposition of
    Collateral .......................................................................... 135

    Section 9-614. Contents and Form of Notification
    Before Disposition of Collateral: Consumer-Goods Transaction ....................................................................... 137

    Section 9-616. Explanation of Calculation of Surplus or Deficiency ......................................................................... 139

    Section 9-627. Determination of Whether Conduct Was Commercially Reasonable ............................................... 142

    Section 9-628. Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor .................. 142

    ARTICLE 12

    CONTROLLABLE ELECTRONIC RECORDS

    Reporter’s Prefatory Note to Article 12 ............................. 144

    Section 12-101. Title ......................................................... 150

    Section 12-102. Definitions .............................................. 150

    Section 12-103. Relationship to Article 9 and Consumer Laws ................................................................................. 152

    Section 12-104. Rights in Controllable Account,
    Controllable Electronic Record, and Controllable
    Payment Intangible ........................................................... 152

    Section 12-105. Control of Controllable Electronic
    Record .............................................................................. 158

    Section 12-106. Discharge of Account Debtor on
    Controllable Account or Controllable Payment
    Intangible .......................................................................... 164

    Section 12-107. Governing Law ....................................... 168

    ANNEX A

    TRANSITION PROVISIONS FOR 2022 AMENDMENTS TO UNIFORM COMMERCIAL CODE—EMERGING TECHNOLOGIES

    Reporter’s Prefatory Note to Annex A—Transition
    Provisions ...................................................................... 173

    PART 1

    GENERAL PROVISIONS

    Section A-101. Effective Date ........................................... 173

    Section A-102. Definitions ................................................ 174

    PART 2

    GENERAL TRANSITION PROVISION

    Section A-201. [Savings Clause.] ..................................... 175

    PART 3

    ADDITIONAL TRANSITION PROVISIONS FOR ARTICLES 9 AND 12

    Section A-301. Savings Clause ........................................ 176

    Section A-302. Security Interest Perfected Before
    Effective Date ................................................................... 177

    Section A-303. Security Interest Unperfected Before
    Effective Date ................................................................... 180

    Section A-304. Effectiveness of Actions Taken Before Effective Date ................................................................... 181

    Section A-305. Priority ...................................................... 183

    Section A-306. Priority of Claims When Priority Rules of Article 9 Do Not Apply ...................................................... 186

    Tentative Draft No. 1 contains draft amendments to Articles 1, 2, 2A, 3, 4, 4A, 5, 7, 8, and 9; draft Article 12; and transition provisions. The membership voted to approve the Tentative Draft at the 2022 Annual Meeting, subject to the discussion at the Meeting and editorial prerogative. This is a joint project with the Uniform Law Commission (ULC) that will be presented for approval at the ULC Annual Meeting in summer 2022.

     
  •  
    Tentative Draft No. 1
    Tentative Draft No. 1
    106 pages, 2018, #1UCC139TD1

    AMENDMENTS TO UNIFORM COMMERCIAL CODE

    ARTICLES 1, 3, 8, AND 9

     

    Prefatory Note................................................................................................................................. 1

    SECTION 1-201.  GENERAL DEFINITIONS............................................................................ 3

    SECTION 3-103.  DEFINITIONS................................................................................................. 6

    SECTION 3-104.  NEGOTIABLE INSTRUMENT..................................................................... 7

    SECTION 3-201.  NEGOTIATION.............................................................................................. 8

    SECTION 3-203.  TRANSFER OF INSTRUMENT; RIGHTS ACQUIRED BY TRANSFER. 9

    SECTION 3-301.  PERSON ENTITLED TO ENFORCE INSTRUMENT............................... 11

    SECTION 3-302.  HOLDER IN DUE COURSE....................................................................... 12

    SECTION 3-308.  PROOF OF SIGNATURES AND STATUS AS HOLDER IN DUE COURSE.        14

    SECTION 3-309.  ENFORCEMENT OF LOST, DESTROYED, OR STOLEN
    INSTRUMENT................................................................................................................. 15

    SECTION 3-412.  OBLIGATION OF ISSUER OF NOTE OR CASHIER’S CHECK........... 16

    SECTION 3-415.  OBLIGATION OF INDORSER................................................................... 17

    SECTION 3-416.  TRANSFER WARRANTIES........................................................................ 19

    SECTION 3-504.  EXCUSED PRESENTMENT AND NOTICE OF DISHONOR................. 21

    SECTION 3-602.  PAYMENT..................................................................................................... 22

    SECTION 3-604.  DISCHARGE BY CANCELLATION OR RENUNCIATION.................. 23

    SECTION 8-103.  RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS...................................... 25

    SECTION 9-102.  DEFINITIONS AND INDEX OF DEFINITIONS...................................... 25

    SECTION 9-105.  CONTROL OF ELECTRONIC CHATTEL PAPER; CONTROL OF ELECTRONIC MORTGAGE NOTE........................................................................................................ 28

    SECTION 9-108.  SUFFICIENCY OF DESCRIPTION............................................................ 30

    SECTION 9-203.  ATTACHMENT AND ENFORCEABILITY OF SECURITY INTEREST; PROCEEDS; SUPPORTING OBLIGATIONS; FORMAL REQUISITES......................................... 31

    SECTION 9-208.  ADDITIONAL DUTIES OF SECURED PARTY HAVING CONTROL OF COLLATERAL................................................................................................................ 32

    SECTION 9-301.  LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS............................................................................................................................................ 34

    SECTION 9-308.  WHEN SECURITY INTEREST OR AGRICULTURAL LIEN IS PERFECTED; CONTINUITY OF PERFECTION.................................................................................. 37

    SECTION 9-310.  WHEN FILING REQUIRED TO PERFECT SECURITY INTEREST OR AGRICULTURAL LIEN; SECURITY INTERESTS AND AGRICULTURAL LIENS TO WHICH FILING PROVISIONS DO NOT APPLY..................................................................... 38

    SECTION 9-312.  PERFECTION OF SECURITY INTERESTS IN CHATTEL PAPER, DEPOSIT ACCOUNTS, DOCUMENTS, GOODS COVERED BY DOCUMENTS, INSTRUMENTS, INVESTMENT PROPERTY, LETTER-OF-CREDIT RIGHTS, AND MONEY; PERFECTION BY PERMISSIVE FILING; TEMPORARY PERFECTION WITHOUT FILING OR TRANSFER OF POSSESSION................................................................................................................... 39

    SECTION 9-313.  WHEN POSSESSION BY OR DELIVERY TO SECURED PARTY PERFECTS SECURITY INTEREST WITHOUT FILING................................................................ 41

    SECTION 9-314.  PERFECTION BY CONTROL..................................................................... 43

    SECTION 9-322.  PRIORITIES AMONG CONFLICTING SECURITY INTERESTS IN AND AGRICULTURAL LIENS ON SAME COLLATERAL............................................... 43

    SECTION 9-330.  PRIORITY OF PURCHASER OF CHATTEL PAPER, ELECTRONIC MORTGAGE NOTE, OR INSTRUMENT............................................................................................. 44

    SECTION 9-406.  DISCHARGE OF ACCOUNT DEBTOR; NOTIFICATION OF ASSIGNMENT; IDENTIFICATION AND PROOF OF ASSIGNMENT; RESTRICTIONS ON ASSIGNMENT OF ACCOUNTS, CHATTEL PAPER, PAYMENT INTANGIBLES, AND PROMISSORY NOTES INEFFECTIVE................................................................................................................. 46

    SECTION 9-408.  RESTRICTIONS ON ASSIGNMENT OF PROMISSORY NOTES, HEALTH-CARE-INSURANCE RECEIVABLES, AND CERTAIN GENERAL INTANGIBLES INEFFECTIVE............................................................................................................................................. 47

    SECTION 9-619.  TRANSFER OF RECORD OR LEGAL TITLE.......................................... 50

     

     

    AMENDMENTS TOUNIFORM COMMERCIAL CODE

    SECTIONS 9-406 AND 9-408

     

     

    Memorandum................................................................................................................................ 51

     

    Amendments to Uniform Commercial Code Sections 9-406 and 9-408...................................... 52

     

     

     

    Appendix A. Definitions from the National Electronic Mortgage Repository Act of 2018 (draft of March 30, 2018)............................................................................................................................ 57

     

    Appendix B. Draft National Mortgage Note Repository Act of 2018..................................... 59

     

               

     

    Tentative Draft No. 1 includes Amendments to Articles 1, 3, 8, and 9 (electronic mortgage notes); and Amendments to Sections 9-406 and 9-408 (anti-assignment overrides). The draft was approved by the membership at the 2018 Annual Meeting, subject to the discussion at the Meeting and the usual editorial prerogative. The Amendments are subject to approval by the Uniform Law Commission at its annual meeting in July 2018.

    106 pages, 2018, #1UCC139TD1E

    AMENDMENTS TO UNIFORM COMMERCIAL CODE

    ARTICLES 1, 3, 8, AND 9

     

    Prefatory Note................................................................................................................................. 1

    SECTION 1-201.  GENERAL DEFINITIONS............................................................................ 3

    SECTION 3-103.  DEFINITIONS................................................................................................. 6

    SECTION 3-104.  NEGOTIABLE INSTRUMENT..................................................................... 7

    SECTION 3-201.  NEGOTIATION.............................................................................................. 8

    SECTION 3-203.  TRANSFER OF INSTRUMENT; RIGHTS ACQUIRED BY TRANSFER. 9

    SECTION 3-301.  PERSON ENTITLED TO ENFORCE INSTRUMENT............................... 11

    SECTION 3-302.  HOLDER IN DUE COURSE....................................................................... 12

    SECTION 3-308.  PROOF OF SIGNATURES AND STATUS AS HOLDER IN DUE COURSE.        14

    SECTION 3-309.  ENFORCEMENT OF LOST, DESTROYED, OR STOLEN
    INSTRUMENT................................................................................................................. 15

    SECTION 3-412.  OBLIGATION OF ISSUER OF NOTE OR CASHIER’S CHECK........... 16

    SECTION 3-415.  OBLIGATION OF INDORSER................................................................... 17

    SECTION 3-416.  TRANSFER WARRANTIES........................................................................ 19

    SECTION 3-504.  EXCUSED PRESENTMENT AND NOTICE OF DISHONOR................. 21

    SECTION 3-602.  PAYMENT..................................................................................................... 22

    SECTION 3-604.  DISCHARGE BY CANCELLATION OR RENUNCIATION.................. 23

    SECTION 8-103.  RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS...................................... 25

    SECTION 9-102.  DEFINITIONS AND INDEX OF DEFINITIONS...................................... 25

    SECTION 9-105.  CONTROL OF ELECTRONIC CHATTEL PAPER; CONTROL OF ELECTRONIC MORTGAGE NOTE........................................................................................................ 28

    SECTION 9-108.  SUFFICIENCY OF DESCRIPTION............................................................ 30

    SECTION 9-203.  ATTACHMENT AND ENFORCEABILITY OF SECURITY INTEREST; PROCEEDS; SUPPORTING OBLIGATIONS; FORMAL REQUISITES......................................... 31

    SECTION 9-208.  ADDITIONAL DUTIES OF SECURED PARTY HAVING CONTROL OF COLLATERAL................................................................................................................ 32

    SECTION 9-301.  LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS............................................................................................................................................ 34

    SECTION 9-308.  WHEN SECURITY INTEREST OR AGRICULTURAL LIEN IS PERFECTED; CONTINUITY OF PERFECTION.................................................................................. 37

    SECTION 9-310.  WHEN FILING REQUIRED TO PERFECT SECURITY INTEREST OR AGRICULTURAL LIEN; SECURITY INTERESTS AND AGRICULTURAL LIENS TO WHICH FILING PROVISIONS DO NOT APPLY..................................................................... 38

    SECTION 9-312.  PERFECTION OF SECURITY INTERESTS IN CHATTEL PAPER, DEPOSIT ACCOUNTS, DOCUMENTS, GOODS COVERED BY DOCUMENTS, INSTRUMENTS, INVESTMENT PROPERTY, LETTER-OF-CREDIT RIGHTS, AND MONEY; PERFECTION BY PERMISSIVE FILING; TEMPORARY PERFECTION WITHOUT FILING OR TRANSFER OF POSSESSION................................................................................................................... 39

    SECTION 9-313.  WHEN POSSESSION BY OR DELIVERY TO SECURED PARTY PERFECTS SECURITY INTEREST WITHOUT FILING................................................................ 41

    SECTION 9-314.  PERFECTION BY CONTROL..................................................................... 43

    SECTION 9-322.  PRIORITIES AMONG CONFLICTING SECURITY INTERESTS IN AND AGRICULTURAL LIENS ON SAME COLLATERAL............................................... 43

    SECTION 9-330.  PRIORITY OF PURCHASER OF CHATTEL PAPER, ELECTRONIC MORTGAGE NOTE, OR INSTRUMENT............................................................................................. 44

    SECTION 9-406.  DISCHARGE OF ACCOUNT DEBTOR; NOTIFICATION OF ASSIGNMENT; IDENTIFICATION AND PROOF OF ASSIGNMENT; RESTRICTIONS ON ASSIGNMENT OF ACCOUNTS, CHATTEL PAPER, PAYMENT INTANGIBLES, AND PROMISSORY NOTES INEFFECTIVE................................................................................................................. 46

    SECTION 9-408.  RESTRICTIONS ON ASSIGNMENT OF PROMISSORY NOTES, HEALTH-CARE-INSURANCE RECEIVABLES, AND CERTAIN GENERAL INTANGIBLES INEFFECTIVE............................................................................................................................................. 47

    SECTION 9-619.  TRANSFER OF RECORD OR LEGAL TITLE.......................................... 50

     

     

    AMENDMENTS TOUNIFORM COMMERCIAL CODE

    SECTIONS 9-406 AND 9-408

     

     

    Memorandum................................................................................................................................ 51

     

    Amendments to Uniform Commercial Code Sections 9-406 and 9-408...................................... 52

     

     

     

    Appendix A. Definitions from the National Electronic Mortgage Repository Act of 2018 (draft of March 30, 2018)............................................................................................................................ 57

     

    Appendix B. Draft National Mortgage Note Repository Act of 2018..................................... 59

     

               

     

    Tentative Draft No. 1 includes Amendments to Articles 1, 3, 8, and 9 (electronic mortgage notes); and Amendments to Sections 9-406 and 9-408 (anti-assignment overrides). The draft was approved by the membership at the 2018 Annual Meeting, subject to the discussion at the Meeting and the usual editorial prerogative. The Amendments are subject to approval by the Uniform Law Commission at its annual meeting in July 2018.