The UCC and Mortgage Notes

If you’re attending the New York UCC seminar this weekend, your timing couldn’t be better:  Earlier this week the Permanent Editorial Board for the Uniform Commercial Code (PEB) issued its report , Application of the Uniform Commercial Code to Selected Issues Relating to Mortgage Notes.

The report specifically indicates that “It should not be assumed that all mortgage notes are negotiable instruments” and  affirms that the requirements of  section 3-104 must be met in order for a particular mortgage note to be considered a negotiable instrument.

(If you’re not registered for the UCC seminar yet, there is space available:  get more information or register now!)

After reviewing the report, Max is more confident than ever that the transfer and sale of mortgage notes is governed by Article 9.  If you’re not able to attend the seminar this weekend, look for a more in-depth analysis of the report in our upcoming newsletter.

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