As a business that conducts transactions in your home state and possibly across state lines in multiple jurisdictions throughout the country, it is important to understand the processes and rules behind commercial debt collection. You will want to have at least a general awareness of the Uniform Commercial Code (UCC).

What is the Uniform Commercial Code?

This Code was established nearly 60 years ago in an effort to standardize regulations.

Like many other uniform acts, its purpose is to create a framework that can be applied in various states and cities across the country, ideally to cut back on contractual and operational variances that often lead to conflict.

The uniformity established by this set of laws allows companies to conduct business and enter contracts knowing that all parties involved are operating under the same set of regulations.

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The UCC applies to states throughout the country, but it is considered a uniform state law, not a federal law.

All states have adopted at least one part of the UCC[1], and the Code has been adopted in its entirety by many states[2].

If you have questions about how the UCC applies to New York laws or which articles have been enacted by the state, Berkovitch & Bouskila, PLLC can be a great resource for answers.

Our commercial collection attorneys are happy to help you and your business recover the debt you are owed in accordance with uniform state laws.

UCC Articles

There are 12 articles[3] in the Uniform Commercial Code, and they cover topics like:

  • General provisions
  • Leases
  • Bank deposits
  • Letters of credit
  • Documents of title
  • Bulk sales
  • Investment securities

The 12th article was recently added and covers emerging technologies, as well as various amendments to previous articles[4]. It hasn’t been enacted by any states as of the time of this writing[5].

Commercial Debt Collection and the UCC

How does the UCC affect your business operations, and specifically your commercial debt collection?

There are a few ways these regulations may affect debt collection, with possible variations depending on which articles states have enacted. One way these laws may dictate your collection efforts is through a filing called a UCC1, sometimes referred to as a Uniform Commercial Code financing statement.

These statements are often used in the initial stages of commercial debt collection to announce your right to attempt to obtain property from defaulted debtors.

The state of New York has its own processes and forms[6] for filing a UCC1, but they can be confusing for many business owners who attempt to initiate this process on their own as it is a legal filing that leaves little room for error.

There are strict guidelines based on the UCC articles adopted by New York, and this complex process is easier to navigate with help from a commercial collection attorney.

The experts at Berkovitch & Bouskila, PLLC have extensive experience in commercial debt collection and can complete the necessary legal filings on your behalf.

New York has also enacted Article 9 of the UCC, which deals with secured transactions[7]. These regulations apply to many areas of your business, including debt settlements.

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It also provides parameters for a business owner’s rights in the event a customer or client fails to meet financial obligations.

While the UCC provides various remedies for addressing debts and defaulted accounts, it also does not prohibit legal action if previous attempts at resolution fail.

Uniformity in government regulations provides a certain amount of simplicity and streamlined application; it does not, however, make legal jargon or complex laws more easily understood.

Working with Berkovitch & Bouskila, PLLC, a premier commercial debt collection firm in New York, means that your collection efforts will benefit from our extensive knowledge of the laws and our years of experience helping our clients secure the funds they are owed.

If you would like to work with a boutique collection firm that utilizes innovative solutions to reclaim your debt, contact us for a free consultation at 212-729-1477.


[1] Uniform Law Commission. UCC Article I, General Provisions.

[2] Uniform Law Commission. Uniform Commercial Code.

[3] Ibid.

[4] Ibid.

[5] Uniform Law Commission.

[6] NY Department of State. UCC Financing Statement.

[7] Uniform Law Commission. UCC Article 9, Secured Transactions.