General commercial law deals with a number of areas of concentration such as banking, negotiable instruments, secured transactions, and other business transactions.
The laws that apply to these types of transactions are largely based upon the Uniform Commercial Code, but they may differ from state to state.
Banking laws and the Uniform Commercial Code come into play when individuals and entities open bank accounts, make deposits, and withdraw funds. These laws also govern many types of lending transactions.
Lending transactions will often include negotiable instruments such as promissory notes and bearer bonds. Many times lending transactions will involve secured transactions, meaning that the lender takes a secured interest in the debtor’s collateral.
The Uniform Commercial Code may also come into play when individuals and entities engage in certain business transactions such as contracts for the sale of personal property and certain leases.
No matter what type of banking or business transaction may be on the horizon, one should plan carefully before entering into such a transaction to avoid violating the Uniform Commercial Code and other applicable local, state, and federal laws.
