What is the Uniform Commercial Code (UCC)?
At Hathaway & Kunz, our Wyoming law firm helps clients with many areas of business legalities including formation, mergers and acquisitions, contracts, and even dispute resolution. One of our most important assets as attorneys is the Uniform Commercial Code UCC). The UCC is a collection of legal rules regarding important business, or “commercial,” activities. Created by the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute (ALI), the primary purpose of the UCC is to make business activities consistent and therefore efficient, across all U.S. states.
The UCC is organized into eleven articles with self-explanatory titles:
Article 1: General Provisions
Article 2: Sales
Article 2A: Leases
Article 3: Negotiable Instruments
Article 4: Bank Deposits and Collections
Article 4A: Funds Transfers
Article 5: Letters of Credit
Article 6: Bulk Transfers/Bulk Sales
Article 7: Documents of Title
Article 8: Investment Securities
Article 9: Secured Transactions
UCC Versions and Amendments
The original UCC was published in 1952, and has undergone many revisions to include many new amendments. However, not all states have adopted all of the revisions, so it is best to check to be sure your state has adopted the latest revision to one or another UCC Section.
It is vital to note that the UCC has no legal force, it is only a model or recommendation for what a state’s commercial code might include. That being said, every U.S. state has adopted some version of the UCC, and those state versions do have legal force.
The Official Comments
The individual sections of the UCC can be difficult to understand. The UCC includes special clarifications called the Official Comments to make sense of the section rules. They are written for each section, in layman’s terms, and sometimes provide explanatory examples. Because state commercial codes are derived from the UCC, the Official Comments of the UCC can still be a good resource to help you understand the section in question, regardless of what state you are dealing with.
The Cheyenne lawyers of Hathaway & Kunz may be able to help you understand the Uniform Commercial Code as well as help with other aspects of your business conducts. Click here or call us today at (307) 634-7723 to schedule a consultation.