UCC (Uniform Commercial Codes) “CODE”

· Since 1940s

· 11 Articles at present

· State law and is interpreted by state courts

· Drafters of UCC (comprised of judges, lawyers from all states)

Article 1: General Provisions

· §1-102(1): This Act shall be liberally construed and applied to promote its underlying purposes and policies.

· §1-103: Supplementary General Principles of Law Applicable

· Applies to ALL articles of the UCC (§1-101, §1-102, §1-103)

· §1-201 Definitions apply throughout the Code

· §1-203 Obligation of Good Faith (§1-201-19) Non-Waivable (§1-102)

Article 2 --- Sales of goods

Article 2A --- Lease of goods

Article 3 --- Negotiable Instruments

Article 4 --- Bank Deposits and Collections

Article 4A --- Funds Transfers

Article 5 --- Letters of Credit

Article 6 --- Bulk Transfers and Bulk Sales

Article 7 --- Documents of title

Article 8 --- Investment Securities

Article 9 --- Secured Transactions *

Article 10 --- Effective Date and Repealer

Article 11 --- Effective Date and Transition Provisions

Article 9 --- SECURED TRANSACTIONS

· What we are primarily concerned with in this class.

· Promulgated the Revised Article 9 (effective July 1, 2001):

-ALI-American Law Institute

-NCCUSL-National Conference of Commissioners on Uniform State Laws

· Primary source of state law regarding obligations secured by interest in personal property and fixtures,

so-called “Asset-Base Financing”

· Focus is on “secured financing”

· Applies to secured transactions involving deposit accounts, commercial tort claims and interests in certain insurance policies

· In a secured credit transaction, the creditor’s right to payment and ability to collect are safeguarded by an interest in property called collaterals (cannot be realty assets); §9-102(12) and §9-105(1)9c)

· Modern law of ST distinguishes between obligations secured by interest in real estate and obligations secured by interest in personalty and fixtures.

· §9-109(a)(1) General Scope of Article 9; a transaction, regardless of its form, that creates a security interest in personal property or fixture by contract

Bankruptcy Code, 11 U.S.C. §101 is the principal source of federal law governing the debtor-creditor relationship