Uniform Commercial Code (UCC)

Sam · Posted: Thu Apr 08, 2004 3:03 am Post subject: Uniform Commercial Code (UCC)

The Uniform Commercial Code (UCC) is the first Uniform Act proposed in order to harmonize the law of sales and other commercial transactions. The law is enforced in all fifty states within the United States of America.

The UCC is a joint project of the National Conference of Commissioners on Uniform State Laws and the American law Institute. These organizations have also established a permanent editorial board for issuing official comments and papers for the Code.

The Uniform Commercial Code deals with the subjects given below:

General provisions (including definitions and rules for interpretation).
Sale and lease of goods.
Letters of credit.
Bank deposits including Funds transfers.
Negotiable Instruments.
Warehouse receipts and other documents of title.
Secured transactions (liens and security interests in personal property).
Investment securities.

The Uniform Commercial Code allows people to make contracts and fill in any missing provision. The law imposes uniformity and streamlining of routine transactions like the processing of checks, notes and other routine commercial paper.

The UCC discourages the use of legal formalities while making business contracts. This is done so that business transactions can be executed without the intervention of legal activities.

Guest

what is the SOL in terms of letters of credit under the ucc;thanks

colin · Posted: Wed Dec 20, 2006 4:17 pm Post subject:

Hi Iglesias,

Welcome to Mortgagefit forum.

As per UCC, to enforce any kind of right arising for letters of credit, the necessary steps should be taken within 1 year after the letter of credit's expiration date,

Or, 1 year after the claim for relief/cause of action starts to accrue.

Of the two, the option to be selected depends upon which of the two occurs later.

Colin

sara · Posted: Wed Dec 20, 2006 11:47 pm Post subject: RE: commercial letter of credit

Hi,

I wonder if everyone here knows about a letter of credit. I got this infromation and thought I should share it with you all.

Here's an outline of Letter of credit:

Commercial letter of credit is a contractual agreement set up between a bank on behalf of its customer authorizing another bank to pay the beneficiary who has provided services to the customer. The former bank is known as the issuing bank while the second bank is called the advising or confirming bank.

The issuing bank provides the letter of credit at the request of its customer. It makes a commitment to honor cash withdrawal made under the letter of credit.

Thanks,

Sara

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