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Can you summarize NYCL UCC Article 3?
Uniform Commercial Code > Commercial Paper
Short Summary
The legal documents reviewed cover various aspects of commercial paper transactions under the Uniform Commercial Code. The legal provision allows the owner of a lost instrument to maintain an action and recover from any party liable on the instrument, with certain requirements and exceptions. The document on discharge of liability governs the extent of discharge for parties involved in commercial paper transactions, including payment or satisfaction, tender of payment, cancellation or renunciation, and more. The document on liability of parties outlines the liability of drawees, representatives, intermediary banks, payor banks, and guarantors in commercial paper transactions. The document on the rights of a holder provides guidance on when a purchaser has notice of a claim or defense related to an instrument. The document on letters of advice explains the use of letters of advice for international sight drafts and the authority of drawee banks. The document on transfer and negotiation of instruments covers the transferability of instruments, the impact of restrictive indorsements, and the rights of transferees. The document on rules and guidelines for commercial paper provides requirements for negotiable instruments, payable to order scenarios, completion of incomplete instruments, and more. No specific exemptions or penalties are mentioned in these legal documents.
Whom does it apply to?
The legal provision applies to the owner of a lost instrument and any party liable on the instrument. The document on discharge of liability applies to all parties involved in commercial paper transactions. The document on liability of parties applies to parties involved in commercial paper transactions, including drawees, representatives, intermediary banks, payor banks, and guarantors. The document on the rights of a holder applies to purchasers of instruments. The document on letters of advice applies to banks involved in international sight drafts. The document on rules and guidelines for commercial paper applies to all parties involved in commercial paper transactions.
What does it govern?
The legal provision allows the owner of a lost instrument to maintain an action and recover from any party liable on the instrument. The document governs the extent of discharge of any party from liability on an instrument in commercial paper transactions. It also governs the liability of parties involved in commercial paper transactions. The document provides guidance on the rights of a holder in commercial paper transactions. It also discusses the use of letters of advice for international sight drafts. Lastly, it provides rules and guidelines for various aspects of commercial paper, including the accrual of causes of action, interest rates, modification of instrument terms, negotiability, payable to order scenarios, completion of incomplete instruments, and more.
What are exemptions?
The legal provision does not apply when the state or a public officer is prosecuting or defending the action. The document on discharge of liability does not discharge a party for impairment of recourse or collateral. The document on liability of parties provides protection to representatives who have acted in good faith and in accordance with reasonable commercial standards on behalf of a non-true owner. The document on the rights of a holder clarifies that knowledge of specific facts does not automatically give notice of a defense or claim. The document on letters of advice does not impose a duty on drawee banks to pay unadvised drafts. The document on transfer and negotiation of instruments allows rescission or other remedies against a subsequent holder in due course.
What are the Penalties?
No specific penalties are mentioned in these legal documents.
Jurisdiction
New York