Which statute governs secured commercial paper?

Which statute governs secured commercial paper?

• A. NY RPL
• B. Article 9 of the UCC
• C. Article 3 of the UCC
• D. CPL

Answer: (C)

Negotiable instruments, like promissory notes and checks, are governed by Article 3 of the Uniform Commercial Code. Even when the instrument is secured by collateral, the instrument itself remains under Article 3 because that article covers negotiability, signatures, and enforcement of the instrument. The security interest that secures the paper is handled by Article 9, but that does not place the instrument under a different statute. The other options don’t apply here: civil procedure law (CPL) governs court processes, and state real property law (NY RPL) covers real estate matters. So the best answer is Article 3 of the UCC.

Negotiable instruments, like promissory notes and checks, are governed by Article 3 of the Uniform Commercial Code. Even when the instrument is secured by collateral, the instrument itself remains under Article 3 because that article covers negotiability, signatures, and enforcement of the instrument. The security interest that secures the paper is handled by Article 9, but that does not place the instrument under a different statute. The other options don’t apply here: civil procedure law (CPL) governs court processes, and state real property law (NY RPL) covers real estate matters. So the best answer is Article 3 of the UCC.