Uniform Commercial Code

Lesson 3: Structure and Organization of the UCC

Welcome to Lesson 3 of our Introduction to the UCC series. In this lesson, we will explore the structure and organization of the Uniform Commercial Code (UCC). Understanding the UCC's structure is essential for navigating its provisions and applying them in legal contexts.

The UCC is divided into various Articles, each covering different aspects of commercial transactions. Here's a high-level overview of the UCC's structure:

graph TD; A["UCC"] --> B["Article 1: General Provisions"]; A --> C["Article 2: Sales"]; A --> D["Article 2A: Leases"]; A --> E["Article 3: Negotiable Instruments"]; A --> F["Article 4: Bank Deposits and Collections"]; A --> G["Article 4A: Funds Transfers"]; A --> H["Article 5: Letters of Credit"]; A --> I["Article 6: Bulk Sales"]; A --> J["Article 7: Documents of Title"]; A --> K["Article 8: Investment Securities"]; A --> L["Article 9: Secured Transactions"];

Article 1: General Provisions

Article 1 lays the groundwork for the entire UCC, offering definitions and general principles applicable to the other Articles. For more details, see Definitions and Principles in Article 1.

Note: Article 1 is fundamental for understanding key terms and principles that apply throughout the UCC.

Article 2: Sales

Article 2 governs the sale of goods, including the formation, performance, and breach of sales contracts. It is one of the most frequently referenced Articles in commercial transactions. Explore more in Formation of Sales Contracts.

Article 2A: Leases

Article 2A deals specifically with the leasing of goods. It outlines the rights and obligations of lessors and lessees. For more information, see Formation of Lease Agreements.

Article 3: Negotiable Instruments

Article 3 covers negotiable instruments such as checks and promissory notes. It outlines the requirements for negotiability and the rights of holders. Learn more about this in Types of Negotiable Instruments.

Article 4: Bank Deposits and Collections

Article 4 regulates bank deposits and the process of collecting checks. It governs the relationships between banks and their customers. See Bank-Customer Relationships for further details.

Article 4A: Funds Transfers

Article 4A is concerned with the transfer of funds through electronic means. It sets out the rights and obligations of parties involved in funds transfers. Read more in Scope and Applicability of Article 4A.

Article 5: Letters of Credit

Article 5 outlines the rules for letters of credit, which are commonly used in international trade. It defines the obligations of issuers and beneficiaries. For additional insights, see Basics of Letters of Credit.

Article 6: Bulk Sales

Article 6 deals with bulk sales, including the sale of a business's inventory outside the ordinary course of business. Learn more in Scope of Article 6.

Article 7: Documents of Title

Article 7 governs documents of title, such as warehouse receipts and bills of lading, which are used in the shipment and storage of goods. Explore this topic in Types of Documents of Title.

Article 8: Investment Securities

Article 8 covers investment securities and the mechanisms for transferring them. It is essential for understanding how securities transactions are conducted. See Types of Investment Securities for more information.

Article 9: Secured Transactions

Article 9 is one of the most complex Articles, dealing with secured transactions. It outlines the creation, perfection, priority, and enforcement of security interests. Find out more in Creation of Security Interests.

Understanding the organization of the UCC helps to navigate its various provisions and apply the relevant rules and principles effectively. In the next lesson, we will dive deeper into the Definitions and Principles in Article 1.