Title 5 — Uniform Commercial Code

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9401. Place of Filing; Erroneous Filing; Removal of Collateral. (1) The proper place to file in order to perfect a security interest is the office of the clerk of the Commonwealth Trial Court. (2) A filing …

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9402. Formal Requisites of Financing Statement; Amendments; Mortgage as Financing Statement. (1) A financing statement is sufficient if it gives the names of the debtor and the secured party, is signed by t…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9403. What Constitutes Filing; Duration of Filing; Effect of Lapsed Filing; Duties of Filing Officer. (1) Presentation for filing of a financing statement and tender of the filing fee or acceptance of the s…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9404. Termination Statement. (1) If a financing statement covering consumer goods is filed on or after April 1, 1983, then within one month or within 10 days following written demand by the debtor after the…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9405. Assignment of Security Interest; Duties of Filing Officer; Fees. (1) A financing statement may disclose an assignment of a security interest in the collateral described in the financing statement by i…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9406. Release of Collateral; Duties of Filing Officer; Fees. A secured party of record may by his signed statement release all or a part of any collateral described in a filed financing statement. The state…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9407. Information From Filing Officer. (1) If the person filing any financing statement, termination statement, statement of assignment, or statement of release, furnishes the filing officer a copy thereof,…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9408. Financing Statements Covering Consigned or Leased Goods. A consignor or lessor of goods may file a financing statement using the terms “consignor,” “consignee,” “lessor,” “lessee” or the like instead …

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9409. Recording on Microfilm. In lieu of filing all financing statements, termination statements, partial releases, assignments, or other related papers falling under this title, the filing officer may reco…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9410. Consecutive File Numbers. Should the filing officer choose to record rather than file all financing statements and related papers, he shall mark each financing statement with a consecutive file number…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 9: SECURED TRANSACTIONS, ETC. § 9411. Originals Returned. Upon recording the financing statement or other related papers, the originals or copy of the same shall be returned to the parties entitled thereto. Source: PL 3-56, § 1 (§ 9411).…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2501. Insurable Interest in Goods; Manner of Identification of Goods. (1) The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers even th…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2502. Buyer’s Right to Goods on Seller’s Insolvency. (1) Subject to subsection (2) of this section and even though the goods have not been shipped a buyer who has paid a part or all of the price of goods in which he has a speci…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2503. Manner of Seller’s Tender of Delivery. (1) Tender of delivery requires that the seller put and hold conforming goods at the buyer’s disposition and give the buyer any notification reasonably necessary to enable him to tak…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2504. Shipment by Seller. Where the seller is required or authorized to send the goods to the buyer and the contract does not require him to deliver them at a particular destination, then unless otherwise agreed he must: (a) Pu…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2505. Seller’s Shipment Under Reservation. (1) Where the seller has identified goods to the contract by or before shipment: (a) His procurement of a negotiable bill of lading to his own order or otherwise reserves in him a secu…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2506. Rights of Financing Agency. (1) A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of the payment or purchase and in addition to its own rights under t…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2507. Effect of Seller’s Tender; Delivery on Condition. (1) Tender of delivery is a condition to the buyer’s duty to accept the goods and, unless otherwise agreed, to his duty to pay for them. Tender entitles the seller to acce…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2508. Cure by Seller of Improper Tender or Delivery; Replacement. (1) Where any tender or delivery by the seller is rejected because nonconforming and the time for performance has not yet expired, the seller may seasonably noti…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2509. Risk of Loss in the Absence of Breach. (1) Where the contract requires or authorizes the seller to ship the goods by carrier: (a) If it does not require him to deliver them at a particular destination, the risk of loss pa…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2510. Effect of Breach on Risk of Loss. (1) Where a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk of their loss remains on the seller until cure or acceptance. (2) Wher…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2511. Tender of Payment by Buyer; Payment by Check. (1) Unless otherwise agreed tender of payment is a condition to the seller’s duty to tender and complete any delivery. (2) Tender of payment is sufficient when made by any mea…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2512. Payment by Buyer Before Inspection. (1) Where the contract requires payment before inspection non-conformity of the goods does not excuse the buyer from so making payment unless: (a) The non-conformity appears without ins…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2513. Buyer’s Right to Inspection of Goods. (1) Unless otherwise agreed and subject to subsection (3) of this section, where goods are tendered or delivered or identified to the contract for sale, the buyer has a right before p…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2514. When Documents Deliverable on Acceptance; When on Payment. Unless otherwise agreed documents against which a draft is drawn are to be delivered to the drawee on acceptance of the draft if it is payable more than three day…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2515. Preserving Evidence of Goods in Dispute. In furtherance of the adjustment of any claim or dispute: (a) Either party on reasonable notification to the other and for the purpose of ascertaining the facts and preserving evid…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3501. When Presentment, Notice of Dishonor, and Protest Necessary or Permissible. (1) Unless excused (5 CMC § 3511) presentment is necessary to charge secondary parties as follows: (a) Presentment for acceptance is n…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3502. Unexcused Delay; Discharge. (1) Where without excuse any necessary presentment or notice of dishonor is delayed beyond the time when it is due: (a) Any indorser is discharged; and (b) Any drawer or the acceptor…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3503. Time of Presentment. (1) Unless a different time is expressed in the instrument the time for any presentment is determined as follows: (a) Where an instrument is payable at or a fixed period after a stated date…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3504. How Presentment Made. (1) Presentment is a demand for acceptance or payment made upon the maker, acceptor, drawee or other payor by or on behalf of the holder. (2) Presentment may be made: (a) By mail, in which…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3505. Rights of Party to Whom Presentment Is Made. (1) The party to whom presentment is made may without dishonor require: (a) Exhibition of the instrument; and (b) Reasonable identification of the person making pres…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3506. Time Allowed for Acceptance or Payment. (1) Acceptance may be deferred without dishonor until the close of the next business day following presentment. The holder may also in a good faith effort to obtain accep…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3507. Dishonor; Holder’s Right of Recourse; Term Allowing RePresentment. (1) An instrument is dishonored when: (a) A necessary or optional presentment is duly made and due acceptance or payment is refused or cannot b…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3508. Notice of Dishonor. (1) Notice of dishonor may be given to any person who may be liable on the instrument by or on behalf of the holder or any party who has himself received notice, or any other party who can b…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3509. Protest; Noting for Protest. (1) A protest is a certificate of dishonor made under the hand and seal of a United States consul or vice consul or a notary public or other person authorized to certify dishonor by…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3510. Evidence of Dishonor and Notice of Dishonor. The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor therein shown: (a) A document regular in form as provided…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 3: COMMERCIAL PAPER § 3511. Waived or Excused Presentment, Protest or Notice of Dishonor or Delay Therein. (1) Delay in presentment, protest or notice of dishonor is excused when the party is without notice that it is due or when the dela…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 4: BANK DEPOSITS AND COLLECTIONS § 4501. Handling of Documentary Drafts; Duty to Send for Presentment and to Notify Customer of Dishonor. A bank which takes a documentary draft for collection must present or send the draft and accompanyin…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 4: BANK DEPOSITS AND COLLECTIONS § 4502. Presentment of “On Arrival” Drafts. When a draft or the relevant instructions require presentment “on arrival,” “when goods arrive” or the like, the collecting bank need not present until in its ju…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 4: BANK DEPOSITS AND COLLECTIONS § 4503. Responsibility of Presenting Bank for Documents and Goods; Report of Reasons for Dishonor; Referee in Case of Need. Unless otherwise instructed and except as provided in division 5 of this title [5…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 4: BANK DEPOSITS AND COLLECTIONS § 4504. Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses. (1) A presenting bank which, following the dishonor of a documentary draft, has seasonably requested instructions bu…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 7: WAREHOUSE RECEIPTS, ETC. § 7501. Form of Negotiation and Requirements of “Due Negotiation.” (1) A negotiable document of title running to the order of a named person is negotiated by his indorsement and delivery. After his indorsement …

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 7: WAREHOUSE RECEIPTS, ETC. § 7502. Rights Acquired by Due Negotiation. (1) Subject to the 5 CMC § 7503 and to the provisions of 5 CMC § 7205 on fungible goods, a holder to whom a negotiable document of title has been duly negotiated acqu…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 7: WAREHOUSE RECEIPTS, ETC. § 7503. Document of Title to Goods Defeated in Certain Cases. (1) A document of title confers no right in goods against a person who before issuance of the document had a legal interest or a perfected security …

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 7: WAREHOUSE RECEIPTS, ETC. § 7504. Rights Acquired in the Absence of Due Negotiation; Effect of Diversion; Seller’s Stoppage of Delivery. (1) A transferee of a document, whether negotiable or non-negotiable, to whom the document has been…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 7: WAREHOUSE RECEIPTS, ETC. § 7505. Indorser Not a Guarantor for Other Parties. The indorsement of a document of title issued by a bailee does not make the indorser liable for any default by the bailee or by previous indorsers. Source: PL…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 7: WAREHOUSE RECEIPTS, ETC. § 7506. Delivery Without Indorsement: Right to Compel Indorsement. The transferee of a negotiable document of title has a specifically enforceable right to have his transferor supply any necessary indorsement b…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 7: WAREHOUSE RECEIPTS, ETC. § 7507. Warranties on Negotiation or Transfer of Receipt or Bill. Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under 5 CMC § 7508, then unless other…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 7: WAREHOUSE RECEIPTS, ETC. § 7508. Warranties of Collecting Bank as to Documents. A collecting bank or other intermediary known to be entrusted with documents on behalf of another or with collection of a draft or other claim against deli…

TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 7: WAREHOUSE RECEIPTS, ETC. § 7509. Receipt or Bill: When Adequate Compliance With Commercial Contract. The question whether a document is adequate to fulfill the obligations of a contract for sale or the conditions of a credit is governe…