- Consolidated Laws - Uniform Commercial Code
CHAPTER 553
AN ACT in relation to certain commercial transactions, constituting the
uniform commercial code and chapter thirty-eight of the consolidated
laws
Became a law April 18, 1962, with the approval of the Governor.
Passed, by a majority vote, three-fifths being present
The People of the State of New York, represented in Senate and
Assembly, do enact as follows:
UNIFORM COMMERCIAL CODE
ARTICLE 1
GENERAL PROVISIONS
PART 1
SHORT TITLE, CONSTRUCTION, APPLICATION AND
SUBJECT MATTER OF THE ACT
Section 1--101. Short Title
Section 1--102. Purposes; Rules of Construction; Variation by Agreement
Section 1--103. Supplementary General Principles of Law Applicable
Section 1--104. Construction Against Implicit Repeal
Section 1--105. Territorial Application of the Act; Parties` Power to
Choose Applicable Law
Section 1--106. Remedies to Be Liberally Administered
Section 1--107. Waiver or Renunciation of Claim or Right After Breach
Section 1--108. Severability
Section 1--109. Section Captions and Subsection Headings
PART 2
GENERAL DEFINITIONS AND PRINCIPLES OF
INTERPRETATION
Section 1--201. General Definitions
Section 1--202. Prima Facie Evidence by Third Party Documents
Section 1--203. Obligation of Good Faith
Section 1--204. Time; Reasonable Time; "Seasonably"
Section 1--205. Course of Dealing and Usage of Trade
Section 1--206. Statute of Frauds for Kinds of Personal Property Not
Otherwise Covered
Section 1--207. Performance or Acceptance Under Reservation of Rights
Section 1--208. Option to Accelerate at Will
Section 1--209. Subordinated obligations
ARTICLE 2
SALES
PART 1
SHORT TITLE, GENERAL CONSTRUCTION AND
SUBJECT MATTER
Section 2--101. Short Title
Section 2--102. Scope; Certain Security and Other Transactions Excluded
From This Article
Section 2--103. Definitions and Index of Definitions
Section 2--104. Definitions: "Merchant"; "Between Merchants"; "Financing
Agency"
Section 2--105. Definitions: Transferability; "Goods"; "Future" Goods;
"Lot"; "Commercial Unit"
Section 2--106. Definitions. "Contract"; "Agreement"; "Contract for
Sale"; "Sale"; "Present Sale"; "Conforming" to
Contract; "Termination"; "Cancellation"
Section 2--107. Goods to Be Severed From Realty: Recording
PART 2
FORM, FORMATION AND READJUSTMENT OF CONTRACT
Section 2--201. Formal Requirements; Statute of Frauds
Section 2--202. Final Written Expression: Parol or Extrinsic Evidence
Section 2--203. Seals Inoperative
Section 2--204. Formation in General
Section 2--205. Firm Offers
Section 2--206. Offer and Acceptance in Formation of Contract
Section 2--207. Additional Terms in Acceptance or Confirmation
Section 2--208. Course of Performance or Practical Construction
Section 2--209. Modification, Rescission and Waiver
Section 2--210. Delegation of Performance; Assignment of Rights
PART 3
GENERAL OBLIGATION AND CONSTRUCTION OF
CONTRACT
Section 2--301. General Obligation of Parties
Section 2--302. Unconscionable Contract or Clause
Section 2--303. Allocation or Division of Risks
Section 2--304. Price Payable in Money, Goods, Realty, or Otherwise
Section 2--305. Open Price Term
Section 2--306. Output, Requirements and Exclusive Dealings
Section 2--307. Delivery in Single Lot or Several Lots
Section 2--308. Absence of Specified Place for Delivery
Section 2--309. Absence of Specific Time Provisions; Notice of
Termination
Section 2--310. Open Time for Payment or Running of Credit; Authority to
Ship Under Reservation
Section 2--311. Options and Cooperation Respecting Performance
Section 2--312. Warranty of Title and Against Infringement; Buyer`s
Obligation Against Infringement
Section 2--313. Express Warranties by Affirmation, Promise, Description,
Sample
Section 2--314. Implied Warranty: Merchantability; Usage of Trade
Section 2--315. Implied Warranty: Fitness for Particular Purpose
Section 2--316. Exclusion or Modification of Warranties
Section 2--317. Cumulation and Conflict of Warranties Express or Implied
Section 2--318. Third Party Beneficiaries of Warranties Express or
Implied
Section 2--319. F.O.B. and F.A.S. Terms
Section 2--320. C.I.F. and C.& F. Terms
Section 2--321. C.I.F. or C.& F.: "Net Landed Weights"; "Payment on
Arrival"; Warranty of Condition on Arrival
Section 2--322. Delivery "Ex-Ship"
Section 2--323. Form of Bill of Lading Required in Overseas Shipment;
"Overseas"
Section 2--324. "No Arrival, No Sale" Term
Section 2--325. "Letter of Credit" Term; "Confirmed Credit"
Section 2--326. Sale on Approval and Sale or Return; Rights of Creditors
Section 2--327. Special Incidents of Sale on Approval and Sale or Return
Section 2--328. Sale by Auction
PART 4
TITLE, CREDITORS AND GOOD FAITH PURCHASERS
Section 2--401. Passing of Title; Reservation for Security; Limited
Application of This Section
Section 2--402. Rights of Seller`s Creditors Against Sold Goods
Section 2--403. Power to Transfer; Good Faith Purchase of Goods;
"Entrusting"
PART 5
PERFORMANCE
Section 2--501. Insurable Interest in Goods; Manner of Identification of
Goods
Section 2--502. Buyer`s Right to Goods on Seller`s Repudiation, Failure
to Deliver, or Insolvency
Section 2--503. Manner of Seller`s Tender of Delivery
Section 2--504. Shipment by Seller
Section 2--505. Seller`s Shipment Under Reservation
Section 2--506. Rights of Financing Agency
Section 2--507. Effect of Seller`s Tender; Delivery on Condition
Section 2--508. Cure by Seller of Improper Tender or Delivery;
Replacement
Section 2--509. Risk of Loss in the Absence of Breach
Section 2--510. Effect of Breach on Risk of Loss
Section 2--511. Tender of Payment by Buyer; Payment by Check
Section 2--512. Payment by Buyer Before Inspection
Section 2--513. Buyer`s Right to Inspection of Goods
Section 2--514. When Documents Deliverable on Acceptance; When on
Payment
Section 2--515. Preserving Evidence of Goods in Dispute
PART 6
BREACH, REPUDIATION AND EXCUSE
Section 2--601. Buyer`s Rights on Improper Delivery
Section 2--602. Manner and Effect of Rightful Rejection
Section 2--603. Merchant Buyer`s Duties as to Rightfully Rejected Goods
Section 2--604. Buyer`s Options as to Salvage of Rightfully Rejected
Goods
Section 2--605. Waiver of Buyer`s Objections by Failure to Particularize
Section 2--606. What Constitutes Acceptance of Goods
Section 2--607. Effect of Acceptance; Notice of Breach; Burden of
Establishing Breach After Acceptance; Notice of Claim
or Litigation to Person Answerable Over
Section 2--608. Revocation of Acceptance in Whole or in Part
Section 2--609. Right to Adequate Assurance of Performance
Section 2--610. Anticipatory Repudiation
Section 2--611. Retraction of Anticipatory Repudiation
Section 2--612. "Installment Contract"; Breach
Section 2--613. Casualty to Identified Goods
Section 2--614. Substituted Performance
Section 2--615. Excuse by Failure of Presupposed Conditions
Section 2--616. Procedure on Notice Claiming Excuse
PART 7
REMEDIES
Section 2--701. Remedies for Breach of Collateral Contracts Not Impaired
Section 2--702. Seller`s Remedies on Discovery of Buyer`s Insolvency
Section 2--703. Seller`s Remedies in General
Section 2--704. Seller`s Right to Identify Goods to the Contract
Notwithstanding Breach or to Salvage Unfinished Goods
Section 2--705. Seller`s Stoppage of Delivery in Transit or Otherwise
Section 2--706. Seller`s Resale Including Contract for Resale
Section 2--707. "Person in the Position of a Seller"
Section 2--708. Seller`s Damages for Non-acceptance or Repudiation
Section 2--709. Action for the Price
Section 2--710. Seller`s Incidental Damages
Section 2--711. Buyer`s Remedies in General; Buyer`s Security Interest
in Rejected Goods
Section 2--712. "Cover"; Buyer`s Procurement of Substitute Goods
Section 2--713. Buyer`s Damages for Non-Delivery or Repudiation
Section 2--714. Buyer`s Damages for Breach in Regard to Accepted Goods
Section 2--715. Buyer`s Incidental and Consequential Damages
Section 2--716. Buyer`s Right to Specific Performance or Replevin
Section 2--717. Deduction of Damages From the Price
Section 2--718. Liquidation or Limitation of Damages; Deposits
Section 2--719. Contractual Modification or Limitation of Remedy
Section 2--720. Effect of "Cancellation" or "Rescission" on Claims for
Antecedent Breach
Section 2--721. Remedies for Fraud
Section 2--722. Who Can Sue Third Parties for Injury to Goods
Section 2--723. Proof of Market Price: Time and Place
Section 2--724. Admissibility of Market Quotations
Section 2--725. Statute of Limitations in Contracts for Sale
ARTICLE 2-A
LEASES
PART 1
GENERAL PROVISIONS
Section 2-A-101. Short Title
Section 2-A-102. Scope
Section 2-A-103. Definitions and Index of Definitions
Section 2-A-104. Leases Subject to Other Law
Section 2-A-105. Territorial Application of Article to Goods Covered by
Certificate of Title
Section 2-A-106. Limitation on Power of Parties to Consumer Lease to
Choose Applicable Law and Judicial Forum
Section 2-A-107. Waiver or Renunciation of Claim or Right After Default
Section 2-A-108. Unconscionability
Section 2-A-109. Option to Accelerate at Will
PART 2
FORMATION AND CONSTRUCTION OF LEASE CONTRACT
Section 2-A-201. Statute of Frauds
Section 2-A-202. Final Written Expression: Parol or Extrinsic Evidence
Section 2-A-203. Seals Inoperative
Section 2-A-204. Formation in General
Section 2-A-205. Firm Offers
Section 2-A-206. Offer and Acceptance in Formation of Lease Contract
Section 2-A-207. Course of Performance or Practical Construction
Section 2-A-208. Modification, Rescission and Waiver
Section 2-A-209. Lessee Under Finance Lease as Beneficiary of Supply
Contract
Section 2-A-210. Express Warranties
Section 2-A-211. Warranties Against Interference and Against
Infringement; Lessee`s Obligation Against Infringement
Section 2-A-212. Implied Warranty of Merchantability
Section 2-A-213. Implied Warranty of Fitness for Particular Purpose
Section 2-A-214. Exclusion or Modification of Warranties
Section 2-A-215. Cumulation and Conflict of Warranties Express or
Implied
Section 2-A-216. Third-Party Beneficiaries of Express or Implied
Warranties
Section 2-A-217. Identification
Section 2-A-218. Insurance and Proceeds
Section 2-A-219. Risk of Loss
Section 2-A-220. Effect of Default on Risk of Loss
Section 2-A-221. Casualty to Identified Goods
PART 3
EFFECT OF LEASE CONTRACT
Section 2-A-301. Enforceability of Lease Contract
Section 2-A-302. Title to and Possession of Goods
Section 2-A-303. Alienability of Party`s Interest Under Lease Contract
or of Lessor`s Residual Interest in Goods; Delegation
of Performance; Transfer of Rights
Section 2-A-304. Subsequent Lease of Goods by Lessor
Section 2-A-305. Sale or Sublease of Goods by Lessee
Section 2-A-306. Priority of Certain Liens Arising by Operation of Law
Section 2-A-307. Priority of Liens Arising by Attachment or Levy on,
Security Interests in, and Other Claims to Goods
Section 2-A-308. Special Rights of Creditors
Section 2-A-309. Lessor`s and Lessee`s Rights When Goods Become Fixtures
Section 2-A-310. Lessor`s and Lessee`s Rights When Goods Become
Accessions
Section 2-A-311. Priority Subject to Subordination
PART 4
PERFORMANCE OF LEASE CONTRACT: REPUDIATED,
SUBSTITUTED AND EXCUSED
Section 2-A-401. Insecurity: Adequate Assurance of Performance
Section 2-A-402. Anticipatory Repudiation
Section 2-A-403. Retraction of Anticipatory Repudiation
Section 2-A-404. Substituted Performance
Section 2-A-405. Excused Performance
Section 2-A-406. Procedure on Excused Performance
Section 2-A-407. Irrevocable Promises: Finance Leases
PART 5
DEFAULT
A. IN GENERAL
Section 2-A-501. Default: Procedure
Section 2-A-502. Notice After Default
Section 2-A-503. Modification or Impairment of Rights and Remedies
Section 2-A-504. Liquidation of Damages
Section 2-A-505. Cancellation and Termination and Effect of
Cancellation, Termination, Rescission, or Fraud on
Rights and Remedies
Section 2-A-506. Statute of Limitations
Section 2-A-507. Proof of Market Rent: Time and Place
B. DEFAULT BY LESSOR
Section 2-A-508. Lessee`s Remedies
Section 2-A-509. Lessee`s Rights on Improper Delivery: Rightful
Rejection
Section 2-A-510. Installment Lease Contracts: Rejection and Default
Section 2-A-511. Merchant Lessee`s Duties as to Rightfully Rejected
Goods
Section 2-A-512. Lessee`s Duties as to Rightfully Rejected Goods
Section 2-A-513. Cure by Lessor of Improper Tender or Delivery;
Replacement
Section 2-A-514. Waiver of Lessee`s Objections
Section 2-A-515. Acceptance of Goods
Section 2-A-516. Effect of Acceptance of Goods; Notice of Default;
Burden of Establishing Default After Acceptance;
Notice of Claim or Litigation to Person Answerable
Over
Section 2-A-517. Revocation of Acceptance of Goods
Section 2-A-518. Cover; Substitute Goods
Section 2-A-519. Lessee`s Damages for Non-delivery, Repudiation,
Default, and Breach of Warranty in Regard to Accepted
Goods
Section 2-A-520. Lessee`s Incidental and Consequential Damages
Section 2-A-521. Lessee`s Right to Specific Performance or Replevin
Section 2-A-522. Lessee`s Right to Goods on Lessor`s Insolvency
C. DEFAULT BY LESSEE
Section 2-A-523. Lessor`s Remedies
Section 2-A-524. Lessor`s Right to Identify Goods to Lease Contract
Section 2-A-525. Lessor`s Right to Possession of Goods
Section 2-A-526. Lessor`s Stoppage of Delivery in Transit or Otherwise
Section 2-A-527. Lessor`s Rights to Dispose of Goods
Section 2-A-528. Lessor`s Damages for Non-acceptance, Failure to Pay,
Repudiation, or Other Default
Section 2-A-529. Lessor`s Action for the Rent
Section 2-A-530. Lessor`s Incidental Damages
Section 2-A-531. Standing to Sue Third Parties for Injury to Goods
Section 2-A-532. Lessor`s Rights to Residual Interest
ARTICLE 3
COMMERCIAL PAPER
PART 1
SHORT TITLE, FORM AND INTERPRETATION
Section 3--101. Short Title.
Section 3--102. Definitions and Index of Definitions
Section 3--103. Limitations on Scope of Article
Section 3--104. Form of Negotiable Instruments; "Draft"; "Check";
"Certificate of Deposit"; "Note"
Section 3--105. When Promise or Order Unconditional
Section 3--106. Sum Certain
Section 3--107. Money
Section 3--108. Payable on Demand
Section 3--109. Definite Time
Section 3--110. Payable to Order
Section 3--111. Payable to Bearer
Section 3--112. Terms and Omissions Not Affecting Negotiability
Section 3--113. Seal
Section 3--114. Date, Antedating, Postdating
Section 3--115. Incomplete Instruments
Section 3--116. Instruments Payable to Two or More Persons
Section 3--117. Instruments Payable With Words of Description
Section 3--118. Ambiguous Terms and Rules of Construction
Section 3--119. Other Writings Affecting Instrument
Section 3--120. Instruments "Payable Through" Bank
Section 3--121. Instruments Payable at Bank
Section 3--122. Accrual of Cause of Action
PART 2
TRANSFER AND NEGOTIATION
Section 3--201. Transfer: Right to Indorsement
Section 3--202. Negotiation
Section 3--203. Wrong or Misspelled Name
Section 3--204. Special Indorsement; Blank Indorsement
Section 3--205. Restrictive Indorsements
Section 3--206. Effect of Restrictive Indorsement
Section 3--207. Negotiation Effective Although It May Be Rescinded
Section 3--208. Reacquisition
PART 3
RIGHTS OF A HOLDER
Section 3--301. Rights of a Holder
Section 3--302. Holder in Due Course
Section 3--303. Taking for Value
Section 3--304. Notice to Purchaser
Section 3--305. Rights of a Holder in Due Course
Section 3--306. Rights of One Not Holder in Due Course
Section 3--307. Burden of Establishing Signatures, Defenses and Due
Course
PART 4
LIABILITY OF PARTIES
Section 3--401. Signature
Section 3--402. Signature in Ambiguous Capacity
Section 3--403. Signature by Authorized Representative
Section 3--404. Unauthorized Signatures
Section 3--405. Impostors; Signature in Name of Payee
Section 3--406. Negligence Contributing to Alteration or Unauthorized
Signature
Section 3--407. Alteration
Section 3--408. Consideration
Section 3--409. Draft Not an Assignment
Section 3--410. Definition and Operation of Acceptance
Section 3--411. Certification of a Check
Section 3--412. Acceptance Varying Draft
Section 3--413. Contract of Maker, Drawer and Acceptor
Section 3--414. Contract of Indorser; Order of Liability
Section 3--415. Contract of Accommodation Party
Section 3--416. Contract of Guarantor
Section 3--417. Warranties on Presentment and Transfer
Section 3--418. Finality of Payment or Acceptance
Section 3--419. Conversion of Instrument; Innocent Representative
PART 5
PRESENTMENT, NOTICE OF DISHONOR AND PROTEST
Section 3--501. When Presentment, Notice of Dishonor, and Protest
Necessary or Permissible
Section 3--502. Unexcused Delay; Discharge
Section 3--503. Time of Presentment
Section 3--504. How Presentment Made
Section 3--505. Rights of Party to Whom Presentment Is Made
Section 3--506. Time Allowed for Acceptance or Payment
Section 3--507. Dishonor; Holder`s Right of Recourse; Term Allowing
Re-Presentment
Section 3--508. Notice of Dishonor
Section 3--509. Protest; Noting for Protest
Section 3--510. Evidence of Dishonor and Notice of Dishonor
Section 3--511. Waived or Excused Presentment, Protest or Notice of
Dishonor or Delay Therein
PART 6
DISCHARGE
Section 3--601. Discharge of Parties
Section 3--602. Effect of Discharge Against Holder in Due Course
Section 3--603. Payment or Satisfaction
Section 3--604. Tender of Payment
Section 3--605. Cancellation and Renunciation
Section 3--606. Impairment of Recourse or of Collateral
PART 7
ADVICE OF INTERNATIONAL SIGHT DRAFT
Section 3--701. Letter of Advice of International Sight Draft
PART 8
MISCELLANEOUS
Section 3--801. Drafts in a Set
Section 3--802. Effect of Instrument on Obligation for Which It Is Given
Section 3--803. Notice to Third Party
Section 3--804. Lost, Destroyed or Stolen Instruments
Section 3--805. Instruments Not Payable to Order or to Bearer
ARTICLE 4
BANK DEPOSITS AND COLLECTIONS
PART 1
GENERAL PROVISIONS AND DEFINITIONS
Section 4--101. Short Title
Section 4--102. Applicability
Section 4--103. Variation by Agreement; Measure of Damages; Certain
Action Constituting Ordinary Care
Section 4--104. Definitions and Index of Definitions
Section 4--105. "Depositary Bank"; "Intermediary Bank"; "Collecting
Bank"; "Payor Bank"; "Presenting Bank"; "Remitting
Bank" Section 4--106. Separate Office of a Bank
Section 4--107. Time of Receipt of Items
Section 4--108. Delays
Section 4--109. Process of Posting
PART 2
COLLECTION OF ITEMS: DEPOSITARY AND
COLLECTING BANKS
Section 4--201. Presumption and Duration of Agency Status of Collecting
Banks and Provisional Status of Credits; Applicability
of Article; Item Indorsed "Pay Any Bank"
Section 4--202. Responsibility for Collection; When Action Seasonable
Section 4--203. Effect of Instructions
Section 4--204. Methods of Sending and Presenting; Sending Direct to
Payor Bank
Section 4--205. Supplying Missing Indorsement; No Notice From Prior
Indorsement
Section 4--206. Transfer Between Banks
Section 4--207. Warranties of Customer and Collecting Bank on Transfer
or Presentment of Items; Time for Claims
Section 4--208. Security Interest of Collecting Bank in Items,
Accompanying Documents and Proceeds
Section 4--209. When Bank Gives Value for Purposes of Holder in Due
Course
Section 4--210. Presentment by Notice of Item Not Payable by, Through
or at a Bank; Liability of Secondary Parties
Section 4--211. Media of Remittance; Provisional and Final Settlement in
Remittance Cases
Section 4--212. Right of Charge-Back or Refund
Section 4--213. Final Payment of Item by Payor Bank; When Provisional
Debits and Credits Become Final; When Certain Credits
Become Available for Withdrawal
Section 4--214. Insolvency and Preference
PART 3
COLLECTION OF ITEMS: PAYOR BANKS
Section 4--301. Deferred Posting; Recovery of Payment by Return of
Items; Time of Dishonor
Section 4--302. Payor Bank`s Responsibility for Late Return of Item
Section 4--303. When Items Subject to Notice, Stop-Order, Legal Process
or Setoff; Order in Which Items May Be Charged or
Certified
PART 4
RELATIONSHIP BETWEEN PAYOR BANK AND
ITS CUSTOMER
Section 4--401. When Bank May Charge Customer`s Account
Section 4--402. Bank`s Liability to Customer for Wrongful Dishonor
Section 4--403. Customer`s Right to Stop Payment; Burden of Proof of
Loss
Section 4--404. Bank Not Obligated to Pay Check More Than Six Months Old
Section 4--405. Death or Incompetence of Customer
Section 4--406. Customer`s Duty to Discover and Report Unauthorized
Signature or Alteration
Section 4--407. Payor Bank`s Right to Subrogation on Improper Payment
Section 4--408. Rights and Liabilities of Remitter or Payee With Respect
to Cashier`s Check, Teller`s Check and Certified Check
PART 5
COLLECTION OF DOCUMENTARY DRAFTS
Section 4--501. Handling of Documentary Drafts; Duty to Send for
Presentment and to Notify Customer of Dishonor
Section 4--502. Presentment of "On Arrival" Drafts
Section 4--503. Responsibility of Presenting Bank for Documents and
Goods; Report of Reasons for Dishonor; Referee in Case
of Need
Section 4--504. Privilege of Presenting Bank to Deal With Goods;
Security Interest for Expenses
ARTICLE 4-A
FUNDS TRANSFERS
PART 1
SUBJECT MATTER AND DEFINITIONS
Section 4-A-101. Short Title
Section 4-A-102. Subject Matter
Section 4-A-103. Payment Order-Definitions
Section 4-A-104. Funds Transfer-Definitions
Section 4-A-105. Other Definitions
Section 4-A-106. Time Payment Order is Received
Section 4-A-107. Federal Reserve Regulations and Operating Circulars
Section 4-A-108. Exclusion of Consumer Transactions Governed by Federal
Law
PART 2
ISSUE AND ACCEPTANCE OF PAYMENT ORDER
Section 4-A-201. Security Procedure
Section 4-A-202. Authorized and Verified Payment Orders
Section 4-A-203. Unenforceability of Certain Verified Payment Orders
Section 4-A-204. Refund of Payment and Duty of Customer to Report With
Respect to Unauthorized Payment Order
Section 4-A-205. Erroneous Payment Orders
Section 4-A-206. Transmission of Payment Order Through Funds-Transfer or
Other Communication System
Section 4-A-207. Misdescription of Beneficiary
Section 4-A-208. Misdescription of Intermediary Bank or Beneficiary`s
Bank
Section 4-A-209. Acceptance of Payment Order
Section 4-A-210. Rejection of Payment Order
Section 4-A-211. Cancellation and Amendment of Payment Order
Section 4-A-212. Liability and Duty of Receiving Bank Regarding
Unaccepted Payment Order
PART 3
EXECUTION OF SENDER`S PAYMENT ORDER BY RECEIVING BANK
Section 4-A-301. Execution and Execution Date
Section 4-A-302. Obligation of Receiving Bank in Execution of Payment
Order
Section 4-A-303. Erroneous Execution of Payment Order
Section 4-A-304. Duty of Sender to Report Erroneously Executed Payment
Order
Section 4-A-305. Liability for Late or Improper Execution or Failure to
Execute Payment Order
PART 4
PAYMENT
Section 4-A-401. Payment Date
Section 4-A-402. Obligation of Sender to Pay Receiving Bank
Section 4-A-403. Payment by Sender to Receiving Bank
Section 4-A-404. Obligation of Beneficiary`s Bank to Pay and Give Notice
to Beneficiary
Section 4-A-405. Payment by Beneficiary`s Bank to Beneficiary
Section 4-A-406. Payment by Originator to Beneficiary; Discharge of
Underlying Obligation
PART 5
MISCELLANEOUS PROVISIONS
Section 4-A-501. Variation by Agreement and Effect of Funds-Transfer
System Rule
Section 4-A-502. Creditor Process Served on Receiving Bank; Set Off by
Beneficiary`s Bank
Section 4-A-503. Injunction or Restraining Order with Respect to Funds
Transfer
Section 4-A-504. Order in Which Items and Payment Orders May Be Charged
to Account; Order of Withdrawals From Account
Section 4-A-505. Preclusion of Objection to Debit of Customer`s Account
Section 4-A-506. Rate of Interest
Section 4-A-507. Choice of Law
ARTICLE 5
LETTERS OF CREDIT
Section 5--101. Short Title
Section 5--102. Scope
Section 5--103. Definitions
Section 5--104. Formal Requirements; Signing
Section 5--105. Consideration
Section 5--106. Time and Effect of Establishment of Credit
Section 5--107. Advice of Credit; Confirmation; Error in Statement of
Terms
Section 5--108. "Notation Credit"; Exhaustion of Credit
Section 5--109. Issuer`s Obligation to Its Customer
Section 5--110. Availability of Credit in Portions; Presenter`s
Reservation of Lien or Claim
Section 5--111. Warranties on Transfer and Presentment
Section 5--112. Time Allowed for Honor or Rejection; Withholding Honor
or Rejection by Consent; "Presenter"
Section 5--113. Indemnities
Section 5--114. Issuer`s Duty and Privilege to Honor; Right to
Reimbursement
Section 5--115. Remedy for Improper Dishonor or Anticipatory Repudiation
Section 5--116. Transfer and Assignment
Section 5--117. Insolvency of Bank Holding Funds for Documentary Credit
Section 5--118. Security Interest of Issuer or Nominated Person
Section 5--119. Applicability
Section 5--120. Savings clause
ARTICLE 7
WAREHOUSE RECEIPTS, BILLS OF LADING
AND OTHER DOCUMENTS OF TITLE
PART 1
GENERAL
Section 7--101. Short Title
Section 7--102. Definitions and Index of Definitions
Section 7--103. Relation of Article to Treaty, Statute, Tariff,
Classification or Regulation
Section 7--104. Negotiable and Non-Negotiable Warehouse Receipt, Bill of
Lading or Other Document of Title
Section 7--105. Construction Against Negative Implication
PART 2
WAREHOUSE RECEIPTS: SPECIAL PROVISIONS
Section 7--201. Who May Issue a Warehouse Receipt; Storage Under
Government Bond
Section 7--202. Form of Warehouse Receipt; Essential Terms; Optional
Terms
Section 7--203. Liability for Non-Receipt or Misdescription
Section 7--204. Duty of Care; Contractual Limitation of Warehouseman`s
Liability
Section 7--205. Title Under Warehouse Receipt Defeated in Certain Cases
Section 7--206. Termination of Storage at Warehouseman`s Option
Section 7--207. Goods Must be Kept Separate; Fungible Goods
Section 7--208. Altered Warehouse Receipts
Section 7--209. Lien of Warehouseman
Section 7--210. Enforcement of Warehouseman`s Lien
Section 7--211. Proceeding to Determine Validity of Lien
PART 3
BILLS OF LADING: SPECIAL PROVISIONS
Section 7--301. Liability for Non-Receipt or Misdescription; "Said to
Contain"; "Shipper`s Load and Count"; Improper
Handling
Section 7--302. Through Bills of Lading and Similar Documents
Section 7--303. Diversion; Reconsignment; Change of Instructions
Section 7--304. Bills of Lading in a Set
Section 7--305. Destination Bills
Section 7--306. Altered Bills of Lading
Section 7--307. Lien of Carrier
Section 7--308. Enforcement of Carrier`s Lien
Section 7--309. Duty of Care; Contractual Limitation of Carrier`s
Liability
PART 4
WAREHOUSE RECEIPTS AND BILLS OF LADING:
GENERAL OBLIGATIONS
Section 7--401. Irregularities in Issue of Receipt or Bill or Conduct of
Issuer
Section 7--402. Duplicate Receipt or Bill; Overissue
Section 7--403. Obligation of Warehouseman or Carrier to Deliver; Excuse
Section 7--404. No Liability for Good Faith Delivery Pursuant to Receipt
or Bill
PART 5
WAREHOUSE RECEIPTS AND BILLS OF LADING:
NEGOTIATION AND TRANSFER
Section 7--501. Form of Negotiation and Requirements of "Due
Negotiation"
Section 7--502. Rights Acquired by Due Negotiation
Section 7--503. Document of Title to Goods Defeated in Certain Cases
Section 7--504. Rights Acquired in the Absence of Due Negotiation;
Effect of Diversion; Seller`s Stoppage of Delivery
Section 7--505. Indorser Not a Guarantor for Other Parties
Section 7--506. Delivery Without Indorsement: Right to Compel
Indorsement
Section 7--507. Warranties on Negotiation or Transfer of Receipt or Bill
Section 7--508. Warranties of Collecting Bank as to Documents
Section 7--509. Receipt or Bill: When Adequate Compliance With
Commercial Contract
PART 6
WAREHOUSE RECEIPTS AND BILLS OF LADING:
MISCELLANEOUS PROVISIONS
Section 7--601. Lost and Missing Documents
Section 7--602. Attachment of Goods Covered by a Negotiable Document
Section 7--603. Conflicting Claims; Interpleader
ARTICLE 8
INVESTMENT SECURITIES
PART 1
SHORT TITLE AND GENERAL MATTERS
Section 8--101. Short Title.
Section 8--102. Definitions.
Section 8--103. Rules for Determining Whether Certain Obligations and
Interests are Securities or Financial Assets.
Section 8--104. Acquisition of Security or Financial Asset or Interest
Therein.
Section 8--105. Notice of Adverse Claim.
Section 8--106. Control.
Section 8--107. Whether Indorsement, Instruction, or Entitlement Order
is Effective.
Section 8--108. Warranties in Direct Holding.
Section 8--109. Warranties in Indirect Holding.
Section 8--110. Applicability; Choice of Law.
Section 8--111. Clearing Corporation Rules.
Section 8--112. Creditor`s Legal Process.
Section 8--113. Statute of Frauds Generally Inapplicable.
Section 8--114. Evidentiary Rules Concerning Certificated Securities.
Section 8--115. Securities Intermediary and Others Not Liable to Adverse
Claimant.
Section 8--116. Securities Intermediary as Purchaser for Value.
PART 2
ISSUE AND ISSUER
Section 8--201. Issuer.
Section 8--202. Issuer`s Responsibility and Defenses; Notice of Defect
or Defense.
Section 8--203. Staleness as Notice of Defect or Defense.
Section 8--204. Effect of Issuer`s Restriction on Transfer.
Section 8--205. Effect of Unauthorized Signature on Security
Certificate.
Section 8--206. Completion or Alteration of Security Certificate.
Section 8--207. Rights and Duties of Issuer with respect to Registered
Owners.
Section 8--208. Effect of Signature of Authenticating Trustee,
Registrar, or Transfer Agent.
Section 8--209. Issuer`s Lien.
Section 8--210. Overissue.
PART 3
TRANSFER OF CERTIFICATED
AND UNCERTIFICATED SECURITIES
Section 8--301. Delivery.
Section 8--302. Rights of Purchaser.
Section 8--303. Protected Purchaser.
Section 8--304. Indorsement.
Section 8--305. Instruction.
Section 8--306. Effect of Guaranteeing Signature, Indorsement, or
Instruction.
Section 8--307. Purchaser`s Right to Requisites for Registration of
Transfer.
PART 4
REGISTRATION
Section 8--401. Duty of Issuer to Register Transfer.
Section 8--402. Assurance that Indorsement or Instruction is Effective.
Section 8--403. Demand that Issuer Not Register Transfer.
Section 8--404. Wrongful Registration.
Section 8--405. Replacement of Lost, Destroyed, or Wrongfully taken
Security Certificate.
Section 8--406. Obligation to Notify Issuer of Lost, Destroyed, or
Wrongfully taken Security Certificate.
Section 8--407. Authenticating Trustee, Transfer Agent, and Registrar.
PART 5
SECURITY ENTITLEMENTS
Section 8--501. Securities Account; Acquisition of Security Entitlement
from Securities Intermediary.
Section 8--502. Assertion of Adverse Claim against Entitlement Holder.
Section 8--503. Property Interest of Entitlement Holder in Financial
Asset held by Securities Intermediary.
Section 8--504. Duty of Securities Intermediary to Maintain Financial
Asset.
Section 8--505. Duty of Securities Intermediary with respect to Payments
and Distributions.
Section 8--506. Duty of Securities Intermediary to Exercise Rights as
directed by Entitlement Holder.
Section 8--507. Duty of Securities Intermediary to comply with
Entitlement Order.
Section 8--508. Duty of Securities Intermediary to change Entitlement
Holder`s Position to Other Form of Security Holding.
Section 8--509. Specification of Duties of Securities Intermediary by
Other Statute or Regulation; Manner of Performance of
Duties of Securities Intermediary and Exercise of
Rights of Entitlement Holder.
Section 8--510. Rights of Purchaser of Security Entitlement from
Entitlement Holder.
Section 8--511. Priority Among Security Interests and Entitlement
Holders.
PART 6
TRANSITION PROVISIONS FOR REVISED ARTICLE 8
AND FOR THE CONFORMING AMENDMENTS TO ARTICLES 1, 5, 9 and 13
Section 8--601. Savings Clause; Effect on Prior Perfected Security
Interest.
Section 8--602. Cross-References to former Article 8; Meaning or
Interpretation.
ARTICLE 9
SECURED TRANSACTIONS
PART 1
GENERAL PROVISIONS
SUBPART 1. SHORT TITLE, DEFINITIONS, AND GENERAL CONCEPTS
Section 9--101. Short Title
Section 9--102. Definitions and Index of Definitions
Section 9--103. Purchase-money Security Interest; Application of
Payments; Burden of Establishing
Section 9--104. Control of Deposit Account
Section 9--105. Control of Electronic Chattel Paper
Section 9--106. Control of Investment Property
Section 9--107. Control of Letter-of-credit Right
Section 9--108. Sufficiency of Description
SUBPART 2. APPLICABILITY OF ARTICLE
Section 9--109. Scope
Section 9--110. Security Interests Arising Under Article 2 or 2-A
PART 2
EFFECTIVENESS OF SECURITY AGREEMENT;
ATTACHMENT OF SECURITY INTEREST;
RIGHTS OF PARTIES TO SECURITY AGREEMENT
SUBPART 1. EFFECTIVENESS AND ATTACHMENT
Section 9--201. General Effectiveness of Security Agreement
Section 9--202. Title to Collateral Immaterial
Section 9--203. Attachment and Enforceability of Security Interest;
Proceeds; Supporting Obligations; Formal Requisites
Section 9--204. After-acquired Property; Future Advances
Section 9--205. Use or Disposition of Collateral Permissible
Section 9--206. Security Interest Arising in Purchase or Delivery of
Financial Asset
SUBPART 2. RIGHTS AND DUTIES
Section 9--207. Rights and Duties of Secured Party Having Possession or
Control of Collateral.
Section 9--208. Additional Duties of Secured Party Having Control of
Collateral
Section 9--209. Duties of Secured Party if Account Debtor Has Been
Notified of Assignment
Section 9--210. Request for Accounting; Request Regarding List of
Collateral or Statement of Account
PART 3
PERFECTION AND PRIORITY
SUBPART 1. LAW GOVERNING PERFECTION AND PRIORITY
Section 9--301. Law Governing Perfection and Priority of Security
Interests
Section 9--302. Law Governing Perfection and Priority of Agricultural
Liens
Section 9--303. Law Governing Perfection and Priority of Security
Interests in Goods Covered by a Certificate of Title
Section 9--304. Law Governing Perfection and Priority of Security
Interests in Deposit Accounts
Section 9--305. Law Governing Perfection and Priority of Security
Interests in Investment Property
Section 9--306. Law Governing Perfection and Priority of Security
Interests in Letter-of-credit Rights
Section 9--307. Location of Debtor
SUBPART 2. PERFECTION
Section 9--308. When Security Interest or Agricultural Lien Is
Perfected: Continuity of Perfection
Section 9--309. Security Interest Perfected upon Attachment
Section 9--310. When Filing Required to Perfect Security Interest or
Agricultural Lien; Security Interests and Agricultural
Liens to Which Filing Provisions Do Not Apply
Section 9--311. Perfection of Security Interests in Property Subject to
Certain Statutes, Regulations, and Treaties
Section 9--312. Perfection of Security Interests in Chattel Paper,
Deposit Accounts, Documents, Goods Covered by
Documents, Instruments, Investment Property,
Letter-of-credit Rights, and Money; Perfection by
Permissive Filing; Temporary Perfection Without Filing
or Transfer of Possession
Section 9--313. When Possession by or Delivery to Secured Party Perfects
Security Interest Without Filing
Section 9--314. Perfection by Control
Section 9--315. Secured Party`s Rights on Disposition of Collateral and
in Proceeds
Section 9--316. Continued Perfection of Security Interest Following
Change in Governing Law
SUBPART 3. PRIORITY
Section 9--317. Interests That Take Priority over or Take Free of
Security Interest or Agricultural Lien
Section 9--318. No Interest Retained in Right to Payment That Is Sold;
Rights and Title of Seller of Account or Chattel Paper
with Respect to Creditors and Purchasers
Section 9-319. Rights and Title of Consignee With Respect to Creditors
and Purchasers
Section 9-320. Buyer of Goods
Section 9-321. Licensee of General Intangible and Lessee of Goods in
Ordinary Course of Business
Section 9-322. Priorities among Conflicting Security Interests in and
Agricultural Liens on Same Collateral
Section 9-323. Future Advances
Section 9-324. Priority of Purchase-money Security Interests
Section 9-325. Priority of Security Interests in Transferred Collateral
Section 9-326. Priority of Security Interests Created by New Debtor
Section 9-327. Priority of Security Interests in Deposit Accounts
Section 9-328. Priority of Security Interests in Investment Property
Section 9-329. Priority of Security Interests in Letter-of-credit Right
Section 9-330. Priority of Purchaser of Chattel Paper or Instrument
Section 9-331. Priority of Rights of Purchasers of Instruments,
Documents, and Securities under Other Articles;
Priority of Interests in Financial Assets and Security
Entitlements under Article 8
Section 9-332. Transfer of Money; Transfer of Funds from Deposit Account
Section 9-333. Priority of Certain Liens Arising by Operation of Law
Section 9-334. Priority of Security Interests in Fixtures and Crops
Section 9-335. Accessions
Section 9-336. Commingled Goods
Section 9-337. Priority of Security Interests in Goods Covered by
Certificate of Title
Section 9-338. Priority of Security Interest or Agricultural Lien
Perfected by Filed Financing Statement Providing
Certain Incorrect Information
Section 9-339. Priority Subject to Subordination
SUBPART 4. RIGHTS OF BANK
Section 9-340. Effectiveness of Right of Recoupment or Set-off Against
Deposit Account
Section 9-341. Bank`s Rights and Duties with Respect to Deposit Account
Section 9-342. Bank`s Right to Refuse to Enter into or Disclose
Existence of Control Agreement
PART 4
RIGHTS OF THIRD PARTIES
Section 9--401. Alienability of Debtor`s Rights
Section 9--402. Secured Party Not Obligated on Contract of Debtor or in
Tort
Section 9--403. Agreement Not to Assert Defenses Against Assignee
Section 9--404. Rights Acquired by Assignee; Claims and Defenses Against
Assignee
Section 9--405. Modification of Assigned Contract
Section 9--406. Discharge of Account Debtor; Notification of Assignment;
Identification and Proof of Assignment; Restrictions
on Assignment of Accounts, Chattel Paper, Payment
Intangibles, and Promissory Notes Ineffective
Section 9--407. Restrictions on Creation or Enforcement of Security
Interest in Leasehold Interest or in Lessor`s Residual
Interest
Section 9--408. Restrictions on Assignment of Promissory Notes,
Health-care-insurance Receivables, and Certain General
Intangibles Ineffective
Section 9--409. Restrictions on Assignment of Letter-of-credit Rights
Ineffective
PART 5
FILING
SUBPART 1. FILING OFFICE; CONTENTS AND
EFFECTIVENESS OF FINANCING STATEMENT
Section 9--501. Filing Office
Section 9--502. Contents of Financing Statement; Record of Mortgage as
Financing Statement; Time of Filing Financing
Statement; Contents of Cooperative Addendum
Section 9--503. Name of Debtor and Secured Party
Section 9--504. Indication of Collateral
Section 9--505. Filing and Compliance with Other Statutes and Treaties
for Consignments, Leases, Other Bailments, and Other
Transactions
Section 9--506. Effect of Errors or Omissions
Section 9--507. Effect of Certain Events on Effectiveness of Financing
Statement
Section 9--508. Effectiveness of Financing Statement If New Debtor
Becomes Bound by Security Agreement
Section 9--509. Persons Entitled to File a Record
Section 9--510. Effectiveness of Filed Record
Section 9--511. Secured Party of Record
Section 9--512. Amendment of Financing Statement
Section 9--513. Termination Statement
Section 9--514. Assignment of Powers of Secured Party of Record
Section 9--515. Duration and Effectiveness of Financing Statement;
Effect of Lapsed Financing Statement
Section 9--516. What Constitutes Filing; Effectiveness of Filing
Section 9--517. Effect of Indexing Errors
Section 9--518. Claim Concerning Inaccurate or Wrongfully Filed Record
SUBPART 2. DUTIES AND OPERATION OF FILING OFFICE
Section 9--519. Numbering, Maintaining, and Indexing Records;
Communicating Information Provided in Records
Section 9--520. Acceptance and Refusal to Accept Record
Section 9--521. Uniform Form of Written Financing Statement; Amendment;
and Cooperative Addendum
Section 9--522. Maintenance and Destruction of Records
Section 9--523. Information from Filing Office; Sale or License of
Records
Section 9--524. Delay by Filing Office
Section 9--525. Fees
Section 9--526. Filing-office Rules
Section 9--527. Duty to Report
PART 6
DEFAULT
SUBPART 1. DEFAULT AND ENFORCEMENT OF SECURITY INTEREST
Section 9--601. Rights after Default; Judicial Enforcement; Consignor or
Buyer of Accounts, Chattel Paper, Payment Intangibles,
or Promissory Notes
Section 9--602. Waiver and Variance of Rights and Duties
Section 9--603. Agreement on Standards Concerning Rights and Duties
Section 9--604. Procedure If Security Agreement Covers Real Property,
Fixtures, or Cooperative Interests
Section 9--605. Unknown Debtor or Secondary Obligor
Section 9--606. Time of Default for Agricultural Lien
Section 9--607. Collection and Enforcement by Secured Party
Section 9--608. Application of Proceeds of Collection or Enforcement;
Liability for Deficiency and Right to Surplus
Section 9--609. Secured Party`s Right to Take Possession after Default
Section 9--610. Disposition of Collateral after Default
Section 9--611. Notification Before Disposition of Collateral
Section 9--612. Timeliness of Notification Before Disposition of
Collateral
Section 9--613. Contents and Form of Notification Before Disposition of
Collateral: General
Section 9--614. Contents and Form of Notification Before Disposition of
Collateral: Consumer-goods Transaction
Section 9--615. Application of Proceeds of Disposition; Liability for
Deficiency and Right to Surplus
Section 9--616. Explanation of Calculation of Surplus or Deficiency
Section 9--617. Rights of Transferee of Collateral
Section 9--618. Rights and Duties of Certain Secondary Obligors
Section 9--619. Transfer of Record or Legal Title
Section 9--620. Acceptance of Collateral in Full or Partial Satisfaction
of Obligation; Compulsory Disposition of Collateral
Section 9--621. Notification of Proposal to Accept Collateral
Section 9--622. Effect of Acceptance of Collateral
Section 9--623. Right to Redeem Collateral
Section 9--624. Waiver
SUBPART 2. NONCOMPLIANCE WITH ARTICLE
Section 9--625. Remedies for Secured Party`s Failure to Comply with
Article
Section 9--626. Action in Which Deficiency or Surplus is in Issue
Section 9--627. Determination of Whether Conduct Was Commercially
Reasonable
Section 9--628. Nonliability and Limitation on Liability of Secured
Party; Liability of Secondary Obligor
PART 7
TRANSITION
Section 9--700. Definitions
Section 9--701. Effective Date
Section 9--702. Savings Clause
Section 9--703. Security Interest Perfected Before Effective Date
Section 9--704. Security Interest Unperfected Before Effective Date
Section 9--705. Effectiveness of Action Taken Before Effective Date
Section 9--706. When Initial Financing Statement Suffices to Continue
Effectiveness of Financing Statement
Section 9--707. Amendment of Pre-effective-date Financing Statement
Section 9--708. Persons Entitled to File Initial Financing Statement or
Continuation Statement
Section 9--709. Priority
Section 9--710. Transitional Provision for Maintaining and Searching
Local-Filing Office Records
ARTICLE 11
PROVISIONS FOR TRANSITION FROM ORIGINAL
ARTICLE 9 TO REVISED ARTICLE 9.
Section 11--101. Definitions.
Section 11--102. Preservation of Old Transition Provision.
Section 11--103. Transition to Revised Article 9--General Rule.
Section 11--104. Transition Provision on Change of Requirement of
Filing.
Section 11--105. Transition Provision on Change of Place of Filing.
Section 11--106. Required Refilings.
Section 11--107. Transition Provisions as to Priorities.
Section 11--108. Presumption that Rule of Law Continues Unchanged.
ARTICLE 13
EFFECTIVE DATE AND REPEALER
Section 13--101. Application of Act
Section 13--102. Laws Repealed; Provision for Transition
Section 13--103. Inconsistent Laws; Which Law Governs
Section 13--104. Laws Not Repealed
Section 13--105. Effective Date
