What is the UCC (Uniform Commercial Code)?

The Uniform Commercial Code, or UCC, is a model law adopted, with variations, in all US states. It governs common commercial transactions such as sales of goods between merchants, leases, negotiable instruments like checks, and secured transactions where a lender takes collateral. For AR and collections, the most relevant articles cover sales terms and the rules for secured interests in receivables and inventory.

The UCC is important in collections because it standardizes much of the legal background for what an invoice means, when title and risk pass, and what rights a seller retains if the buyer does not pay. It also governs UCC filings, the public records that lenders file to put the world on notice of their security interest in a borrower's collateral, including accounts receivable.

This page is general information, not legal advice. UCC rules vary by state, and specific questions about a contract, filing, or dispute should go to a qualified attorney. For Syntharra's operational posture on legal matters, see the compliance page.