WHY
THE UCC FILING
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In
the 1950s the Uniform Commercial Code
was presented to the States as a means of unifying the generally accepted
procedures for handling the new legal system of dealing with commercial
fictions as though they were real. Security instruments replaced substance
as collateral for debts. Security instruments could be supported by
presumptive contracts. Debt instruments with collateral, and accommodating
parties, could be used instead of money.
Money
and the need for money was disappearing, and a uniform system of laws
had to be put in place to allow the courts to uphold the security instruments
that depended on commercial fictions as a basis for compelling payment
or performance. All this was accomplished by the mid 1960s.
The
commercial code is merely a codification of accepted and required procedures
all people engaged in commercial activities must follow. The basic principles
of commerce had been settled thousands of years ago, but were refined
as commerce become more sophisticated over the year.
In
the 1900s the age-old principles of commerce shifted from
substance to form. Presumption became a big part of the law. Without
giving a degree of force to presumption, the new direction in enforcing
commercial claims could not be supported in courts. If the claimants
were required to produce their claims every time they tried to collect
money or time from the people, they would seldom be successful.
The
principles expressed in the code combine the means of dealing with substantive
commercial activities with the means of dealing with presumptive commercial
activities. These principles work as well for the people as they do
for the deceivers. The rules do not respect persons.
Cont'd
UCC Title
