Uniform Commercial Code

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DEFINITION

A standard set of business laws that regulate financial contracts. The Uniform Commercial Code has been adopted by most states in the U.S. The code itself has nine separate articles. Each article deals with separate aspects of banking and loans. The UCC better enabled lenders to loan money secured by the borrower's personal property.

INVESTOPEDIA EXPLAINS

The UCC was drawn up and ratified by most states in the 1950s. Louisiana is now the only state that has not fully ratified the code, although it has adopted Article 3, relating to checks, drafts and other negotiable instruments. A recent addition to the code covers corporate electronic payments.


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