securedtransaction.docVIP

SECURED TRANSACTION Fall 2001: Professor Zinnecker 08/13/01 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 i