What does UCC Article 3 cover?
Uniform Commercial Code Article 3 governs negotiable instruments: drafts (including checks) and notes representing a promise to pay a sum of money, and that have independent value because they are negotiable.
How does UCC define signature?
Under the UCC, a “signature” is any writing or mark used by a person to indicate that a writing is authentic. Agents often sign on behalf of principals, and when the authorized agent makes clear that she is so signing—by naming the principal and signing her name as “agent”—the principal is liable, not the agent.
What is a UCC 3 Termination Statement?
A UCC-3 termination statement (a “Termination”) is a required filing that terminates a security interest that has been perfected by a UCC-1 filing. A Termination for personal property is accomplished by completing and filing form UCC-3 with the Secretary of State’s office in the appropriate state.
What is considered a legal signature?
A legal signature has the following characteristics: It’s a sign, mark, character, symbol or letters written, stylized or drawn and unique to a person. The process of signing conveys the expression of consent. There are many ways a person can sign a legal document.
What defines a legal signature?
A legal signature refers to the signatory’s name written in a distinct form that’s used to identify themselves or provide authorization on important business documents. The way people do business traditionally has changed.
How long is statute of limitations in Article 3 of the UCC for most actions involving negotiable instruments?
While Commercial Code 3118(a) provides for a 6 year statute of limitations which can apply to a promissory note (9-109(a)(3). The key is this ONLY applies to a negotiable instrument (Comm. Code §3102) So, you have to make sure your promissory note falls under the Commercial Code.
What transactions does the UCC cover?
The Uniform Commercial Code (UCC) contains rules applying to many types of commercial contracts, including contracts related to the sale of goods, leasing of goods, use of negotiable instruments, banking transactions, letters of credit, documents of title for goods, investment securities, and secured transactions.
What is an instrument under UCC?
The UCC defines a negotiable instrument as an unconditioned writing that promises or orders the payment of a fixed amount of money. Drafts and notes are the two categories of instruments. A draft is an instrument that orders a payment to be made.
What is the UCC code for without recourse?
A phrase used by an endorser (a signer other than the original maker) of a negotiable instrument (for example, a check or promissory note) to mean that if payment of the instrument is refused, the endorser will not be responsible.
Who can file UCC-3 Termination?
The secured party has 20 days to either terminate the filing or send a termination statement to the debtor that the debtor can then file. If this does not happen within the 20-day time frame, the debtor may file a UCC-3 termination statement.
How many years is a UCC good for?
How long does a UCC filing last? A UCC-1 filing is good for five years. After five years, it is considered lapsed and no longer valid. Should your debtor remain in debt to you and encounter financial difficulty or file for bankruptcy, you have no secured interest if your UCC-1 filing has lapsed.
How do I remove a UCC lien?
Ask the lender to terminate the lien upon payoff. When you pay off a loan, a good rule of thumb is to immediately submit a request with the lender to file a UCC-3 form with your secretary of state. The UCC-3 will terminate the lien on your company’s asset (or assets) and remove the UCC-1 filing.
What makes a signature legally binding?
As long as it adequately records the intent of the parties involved in a contractual agreement, it’s considered a valid signature. Usually this mark is made by a pen, but not necessarily. The signature can be made by anything that marks the paper.