Law School Discussion

Loans and UCC

Loans and UCC
« on: April 28, 2006, 07:19:58 PM »
Is a loan a "good" per applying the UCC?
I'm pretty sure it is not but one of my prof's practice exam raised this issue and I can't find a source on it.

Re: Loans and UCC
« Reply #1 on: April 28, 2006, 10:14:10 PM »
h) "Goods" includes all things which are movable at the time the security interest attaches or which are fixtures (Section 9-313), but does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like (including oil and gas) before extraction. "Goods" also includes standing timber which is to be cut and removed under a conveyance or contract for sale, the unborn young of animals, and growing crops;

(i) "Instrument" means a negotiable instrument (defined in Section 3-104), or a certificated security (defined in Section 8-102) or any other writing which evidences a right to the payment of money and is not itself a security agreement or lease and is of a type which is in ordinary course of business transferred by delivery with any necessary indorsement or assignment;

Just note that the UCC does apply, just not Article 2 specifically (but it will come into play because many of the suits involving loans are based on an underlying transaction involving a good.