The UCC is a comprehensive modernization of various statutes relating to commercial transactions including sales, leases, negotiable instruments, bank deposits and collections, funds transfers, letters of credit, bulk sales, documents of title, investment securities, and secured transactions.
The Permanent Editorial Board for the UCC, a joint committee of ALI and the Uniform Law Commission, assists in attaining and maintaining uniformity in state statutes governing commercial transactions by discouraging non-uniform amendments to the UCC by the states, and by approving and promulgating amendments to the UCC when necessary. Visit the PEB page for recent PEB commentaries and other documents.
A volume of the complete text of the UCC is available for purchase from Thomson Reuters.
This report explains the application of UCC Articles 3 and 9 to provide guidance in (i) identifying the person who is entitled to enforce the payment obligation of the maker of a mortgage note, and to whom the maker owes that obligation; and (ii) determining who owns the rights represented by the note and mortgage.
PEB Report on Application of the UCC to Selected Issues Relating to Mortgage Notes (corrected 11/16/2011)
Electronic | 1UCCNOV11E | 2011 | 17 pages
Issues relating to the transfer, ownership, and enforcement of mortgage notes are primarily governed by two Articles of the UCC: (1) in cases in which the mortgage note is a negotiable instrument, Article 3 provides rules governing the obligations of parties on the note and the enforcement of those obligations; and (2) in cases involving either negotiable or non-negotiable notes, Article 9 contains important rules governing how ownership of those notes may be transferred, the effect of the transfer of ownership of the notes on the ownership of the mortgages securing those notes, and the right of the transferee, under certain circumstances, to record its interest in the mortgage in the applicable real estate recording office.