What Are Ucc (Uniform Commercial Code) Records – Tax Liens Auctions

31 October, 2010

The Uniform Commercial Code, commonly referred to as the UCC, was created in 1952 and is a standard station of uniform acts for different financial laws governing commercial and financial transactions. The original purpose is to execute different transactions uniform throughout the United States so people don’t have to understand different laws governing financial transactions when they move from state to state. The UCC deals primarily with financial transactions keen moveable property (personal property) and immovable property (not real property.)

The UCC is also designed to streamline the process and handling of financial transactions. Another purpose of the UCC is to invent business move along swiftly without the need for lawyers at all points during a contract negotiation process. Without it, business would never commence because each side would be painstakingly ironing out details in order to keep their interests intact.

Developed by National Conference of Commissioners on Uniform State Laws (NCCUSL), all 50 states recognize the code and use it within the laws in each particular, with Louisiana being the only state that doesn’t recognize a portion of the code. Instead, Louisiana refers to its absorb civil law in place of using the second article of the UCC.

The UCC has nine different sections, commonly referred to as articles:

Article 1: Introduces the UCC and the general provisions and rules of interpretation of the UCC.

Article 2: Covers areas like sales transactions, creditors and legal remedies for breach of contract.

Article 2A: Deals with the leases of goods.

Article 3: Delves into negotiable instrument transactions like banking notes and drafts.

Article 4: Deals with banking transactions and the process of check collections.

Article 4A: Deals with funds transfers between financial institutions.

Article 5: Deal with transactions involving credit transactions.

Article 6: Deals with auctions and liquidations of sure assets.

Article 7: Deals with warehouse receipts, bills of lading and other title transactions. It also explains the bailment of goods.

Article 8: Deals with investment securities and financial assets.

Article 9: Deals with secured transactions.

UCC records are an important part of the UCC. The Uniform Commercial Code Bureau keeps files of financial transactions conducted by individuals, businesses and corporations. Files can include tax liens and are meant to serve as a record of financial obligations. These become incredibly useful when ownership and obligation is called into question.

The UCC has been consistently updated as technology changes the blueprint the world conducts business. Though confusing to the general public, the UCC and UCC records was designed to make life easier for everyone in the financial world. Without it, financial transactions would be a lot more complicated and not be very consumer and business qualified. With the UCC, business is conducted more rapidly and offers a written form of financial interests for both sides of the transaction.

Understanding the UCC and UCC records is important when conducting larger personal financial transactions. Knowing the UCC and its process will aid you understand and retain your rights when it comes to your financial and property obligations.

Sources

U.S. Small Business Administration
The National Conference of Commissioners on Uniform State Laws