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.
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.
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.
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.
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.