National Conference of Commissioners on Uniform State Laws

211 E. Ontario St., Suite 1300, Chicago, IL 60611
tel 312-915-0195, fax 312-915-0187

For Immediate Release

REVISIONS TO KEY ARTICLES OF UNIFORM COMMERCIAL CODE COMPLETED

August 5, 2002 — The Uniform Commercial Code (UCC), drafted by the National Conference of Commissioners on Uniform State Laws (NCCUSL) with the American Law Institute, has achieved substantial uniformity of commercial law in the United States through enactment in all 50 states as well as the District of Columbia, the U.S. Virgin Islands, and Puerto Rico. Current amendments to various UCC Articles are part of an ongoing undertaking by NCCUSL and the ALI to modernize the UCC, originally promulgated in 1951, and keep it responsive to contemporary commercial realities. These amendments were approved by NCCUSL at its 111th Annual Meeting just concluded in Tucson, Arizona.

UCC Articles 3 and 4, the articles which facilitate check processing and collection under state law, were amended to keep pace with developments of legal rules in this area. Among the new provisions, the amendments permit certain notices to be given in electronic form, removing barriers to electronic commerce. The Amendments to UCC Articles 3 and 4 have been approved by the ALI.

Article 2 of the UCC has governed the sale of goods since its promulgation in 1951. UCC2 has been amended to accommodate electronic commerce and to reflect development of business practices, changes in other law, and interpretive difficulties of practical significance. UCC2A, originally promulgated in 1987 and adopted in every state except Louisiana, provides states with a legal framework for any transaction, regardless of form, that creates a lease of personal property. New amendments to UCC2A also update and modernize the article. The Amendments to UCC Articles 2 and 2A await further approval by the ALI.

The National Conference of Commissioners on Uniform State Laws is now in its 111th year. The organization comprises more than 300 lawyers, judges, and law professors, appointed by the states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, to draft proposals for uniform and model laws and work toward their enactment in their legislatures. Since its inception in 1892, the group has promulgated more than 200 acts, among them such bulwarks of state statutory law as the Uniform Commercial Code, the Uniform Probate Code, and the Uniform Partnership Act.

For further information, please contact John McCabe or Katie Robinson at 312-915-0195, or Gabrielle Bamberger at 212-333-5222.