Early last year, this column reported enthusiastically on efforts of certain New York bar associations, legislators and others to bring the New York Uniform Commercial Code into the 21st century.1 The need for modernizing the statute was obvious. New York was the only state that had not adopted amendments to Articles 3 (negotiable instruments) and 4 (bank deposits and collections) recommended as far back as 1990 by the Uniform Law Commission (the ULC, also known as the National Commissioners on Uniform State Laws) and the American Law Institute (ALI)—its Articles 3 and 4 being the 1968 versions of those articles. Its Article 1 (general provisions) and Article 7 (documents of title) similarly failed to reflect the latest recommended provisions (being those proposed by the ULC and ALI in 2001 for Article 12 and in 2003 for Article 7.3 And it had not adopted the 2010 amendments to Article 9.4

As the primary U.S. commercial law jurisdiction, the New York UCC’s woefully laggard status created significant issues for practitioners and financial institutions alike. Mismatches between the New York UCC and other state statutes created fertile ground for errors in documents, and a growing inability to apply judicial decisions under other state UCC laws to New York (and vice versa). Industry associations were concerned it threatened New York’s status as the jurisdiction of choice for conducting domestic and international business.

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