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Business Definition for: Uniform Commercial Code (UCC)
Uniform Commercial Code (UCC)

legal code that standardizes business law in the United States. The Code was formulated in 1952 by the National Conference of Commissioners on United States Laws. The Code was offered to the state legislatures, and all states except Louisiana adopted it. For example, the Code covers regulations on commercial paper, warranties, uncertified checks, written agency agreements, security agreements, and bankruptcy. The Uniform Commercial Code is followed by practicing lawyers.

Uniform Commercial Code (UCC)

legal code adopted by most states that codifies various laws dealing with commercial transactions, primarily those involving the sale of goods, both tangible and intangible, and secured transactions. It was drafted by the National Conference of Commissioners of Uniform State Laws and covers bank deposits, bankruptcy, commercial letters of credit, commercial paper, warranties, and other commercial activities. Article 8 of the UCC applies to transactions in investment securities.

Uniform Commercial Code (UCC)

set of standardized state laws governing financial contracts. The code was drafted by the National Conference of State Law Commissioners, and was adopted in the 1950s by most states and the District of Columbia. (Louisiana, the only state which has not fully ratified the code, has adopted Article 3 of the UCC, dealing with checks , drafts , and negotiable instruments .) The code has nine separate sections, called articles. The most important of these are Article 3, dealing with negotiable instruments; Article 4, dealing with bank deposits and collections ; Article 5, dealing with letters of credit ; Article 7, dealing with warehouse receipts and other documents of title ; and Article 8 and article 9 , dealing with secured loans .

The most recent addition to the UCC, Article 4A, covers corporate-to-corporate electronic payments, such as wire transfers and automated clearinghouse credit transfers, and has been adopted by most states. Article 4A does not address consumer transactions, deferring to the Electronic Funds Transfer Act and Federal Reserve Regulation E for regulation of consumer payments.

Adoption of the code by state legislatures made it easier for lenders to extend credit secured by personal property . such as a firm's equipment or receivables, as opposed to mortgage loans secured by real estate. The code also cleared up some ambiguities and differences in state laws, and required that contracts for sale or purchase of goods worth $500 be in writing to be enforceable.

See also security interest , financing statement , security agreement , perfected lien
Uniform Commercial Code (UCC)

a group of laws to standardize the state laws that are applicable to commercial transactions. Few of the laws have relevance to real estate .

Example: The Uniform Commercial Code applies to chattel mortgages , promises, commercial paper securities , ETC.

Uniform Commercial Code (UCC)

code of laws governing various commercial transactions, including the sale of goods, banking transactions, secured transactions in personal property, and other matters, that was designed to bring uniformity in these areas to the laws of the various states, and that has been adopted, with some modifications, in all states (except Louisiana) as well as in the District of Columbia and in the Virgin Islands.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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