Broadly, the Uniform Commercial Code (UCC) has been adopted, in some form, by nearly every state. It governs, by statute, most commercial transactions, from manufacturing to banking. For example (abridged for overview):<\/p>\n
– UCC Article 2 – Sales<\/strong> (of Goods) – UCC Article 2A – Leases<\/strong> (of Goods) – UCC Article 3 – Negotiable Instruments<\/strong> (see Article 4 or 9 for controlling provisions) – UCC Article 4 – Bank Deposits<\/strong> (see Article 3)<\/p>\n – UCC Article 4A – Funds Transfers<\/strong> – UCC Article 5 – Letters of Credit<\/strong> – UCC Article 6 – Bulk Transfers and Bulk Sales (Michigan – Repealed – January 4, 1999) – UCC Article 8 – Investment Securities<\/strong> – UCC Article 9 – Secured Transactions<\/strong>
\nUnless the context otherwise requires, this Article applies to transactions in goods. Goods are those things that are moveable at the time of sale.<\/p>\n
\nThis Article applies to any transaction that creates a lease. “Lease<\/em>” means\u00a0a transfer of the right to possession and use of goods\u00a0for a term in return for consideration.<\/p>\n
\nThis Article applies to negotiable instruments. Negotiable instruments means an unconditional promise or order\u00a0to pay a fixed amount of money (with additional specific requirements)<\/p>\n
\n“Funds transfer<\/em><\/span>” means the series of transactions, made for the purpose of making payment to the beneficiary\u00a0of the order.<\/p>\n
\nThis article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. “Letter of Credit<\/em>”\u00a0means a definite undertaking by an issuer\u00a0to a beneficiary\u00a0at the request to honor\u00a0a documentary\u00a0presentation\u00a0by payment.<\/p>\n
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\n– UCC Article 7 – Bailments<\/strong> (Bill of Ladings and Documents of Title)
\nThis article applies largely to Bailees, meaning\u00a0a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession of goods and contracts to deliver them.<\/p>\n
\nThis article applies to securities (and investment companies),\u00a0meaning\u00a0an obligation of an issuer that\u00a0is represented by a security certificate\u00a0in\u00a0bearer\u00a0or\u00a0registered form, that\u00a0is one of a class or series, and that\u00a0(a) is traded on securities exchanges or securities markets; or (b)\u00a0is a medium for investment and is a security expressly governed by this Article.<\/p>\n
\nThis article applies to transactions that creates a security interest in personal property\u00a0by contract; agricultural liens; sale of accounts (payment intangibles, promissory notes, etc.); and, \u00a0consignments. With several other inclusions authorized under the UCC generally, and several other exclusions expressly removed from UCC Article 9.<\/p>\n