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{"id":1461,"date":"2014-06-11T13:58:54","date_gmt":"2014-06-11T13:58:54","guid":{"rendered":"http:\/\/jaysonlawgroup.com\/?p=1461"},"modified":"2015-04-17T14:12:52","modified_gmt":"2015-04-17T18:12:52","slug":"uniform-commercial-code-ucc","status":"publish","type":"post","link":"http:\/\/www.jaysonlawgroup.com\/uniform-commercial-code-ucc\/","title":{"rendered":"What is the Uniform Commercial Code (UCC)?"},"content":{"rendered":"
\n

One of our most important assets as Newark business attorneys<\/a> of The Jayson Law Group LLC is the Uniform Commercial Code (UCC). The UCC is a collection of legal rules regarding important business, or \u201ccommercial,\u201d activities, published in 1952 after ten years in development. 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. New Jersey adopted the following Articles of the UCC to govern the business and commercial transactions within the state:<\/p>\n

Article 1: General Provisions<\/strong><\/h3>\n<\/div>\n
\n

Article 1 of the UCC addresses definitions and interpretation of the provisions.<\/p>\n

Article 2: Sales<\/strong><\/h3>\n

Article 2 of the UCC applies to transactions in goods, but does not apply to secured transactions.<\/p>\n

Article 2A: Leases<\/strong><\/h3>\n

Article 2A affects any transaction, regardless of form, that creates a lease<\/a>.<\/p>\n

Article 3: Negotiable Instruments<\/strong><\/h3>\n

Article 3 has to do with negotiable instruments that are not money, to payment orders governed by Article 4A, or securities governed by Article 8.<\/p>\n

Article 4: Bank Deposits and Collections<\/strong><\/h3>\n

Article 4 defines that the liability of a bank, with respect to items of presentment, payment, or collection, is governed by the law of the place where the bank is located.<\/p>\n

Article 4A: Funds Transfers<\/strong><\/h3>\n

Article 4A concerns funds transfers, including any payment order issued from an originator for the purpose of making payment to the beneficiary of the order.<\/p>\n

Article 5: Letters of Credit<\/strong><\/h3>\n

Article 5 relates to letters of credit and the rights and obligations arising out of transaction involving a letter of credit.<\/p>\n

Article 6: Bulk Transfers\/Bulk Sales<\/strong><\/h3>\n

Article 6 of the UCC is not adopted by New Jersey State.<\/p>\n

Article 7: Documents of Title<\/strong><\/h3>\n

Article 7 deals with storage and bailment of goods, including warehouse receipts, bills of lading, and other documents of title.<\/p>\n

Article 8: Investment Securities<\/strong><\/h3>\n

Article 8 pertains to certain types of equity interest (e.g., shares) issued by an entity that is registered as an investment company, unit investment trust, or face-amount certificate company that is registered under the federal investment company laws.<\/p>\n

Article 9: Secured Transactions<\/strong><\/h3>\n

Article 9 applies to:<\/p>\n

1) a transaction that creates a security interest in personal property or fixtures by contract<\/p>\n

2) an agricultural lien;<\/p>\n

3) a sale of accounts, chattel paper, payment intangibles, or promissory notes;<\/p>\n

4) a consignment; and<\/p>\n

5) a security interest (with certain limitations).<\/p>\n<\/div>\n

The Official Comments<\/strong><\/h3>\n

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\u2019s 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. For questions or legal assistance regarding New Jersey contracts<\/a>, New Jersey e-commerce transactions<\/a>, and other aspects of commercial dealings in New Jersey call The Jayson Law Group at 908-768-3633.<\/p>","protected":false},"excerpt":{"rendered":"

One of our most important assets as Newark business attorneys of The Jayson Law Group LLC is the Uniform Commercial Code (UCC). The UCC is a collection of legal rules regarding important business, or \u201ccommercial,\u201d activities, published in 1952 after …<\/p>\n","protected":false},"author":1,"featured_media":2556,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-1461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-law"],"yoast_head":"\nWhat is the Uniform Commercial Code (UCC)?<\/title>\n<meta name=\"description\" content=\"The Uniform Commercial Code (UCC) is a set of rules governing different interactions between business. 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