Definition:
Uniform Commercial Code laws are established by each state to regulate sales of personal property,. Purchase of real estate is not a UCC transaction.
Most Uniform Commercial Code transactions involve secured property, financed by a bank or lender with the title to the property held by the lender as security until the loan is paid off.
For a secured transaction, a UCC-1 financing statement is prepared and signed by both parties.
Here is a list of the Uniform Commercial Code statutes for each state.
Also Known As: UCC
Examples:
The purchase of a car with a loan from a bank or financing entity is a good example of a Uniform Commercial Code transaction. A UCC-1 is filed and the title is kept by the lender until the loan is paid off.
