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Uniform Commercial Code


BoatWiki - Definitions


The Uniform Commercial Code (UCC) can be defined as a set of laws regulating commercial transactions within the United States. These have been uniformly adopted and are enforced by all state level jurisdictions in a similar fashion. Although implemented by most U.S. territories, there may be some variations in the utilization of certain articles.


The UCC is mostly concerned with personal property and does not typically apply to matters of real estate. It governs most aspects of banking and financing, along with other  types of commercial transactions. One of its main functions is the facilitation of UCC1 recordings with regard to the collateralization of personal property loans.


Boats are viewed as personal property and may therefore fall subject to certain aspects of the UCC. This is particularly true when it comes to marine loans and the securing of boats as collateral. A UCC financing statement can be filed against any boat, but will only perfect or establish prioritization on those which are not state titled or currently USCG documented.


UCC rules may be of particular concern to boaters with respect to boat lien searches, contractual arrangements, and monetary exchanges. Boaters who are unsure of the consequences should consult with a qualified professional.

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5/27/2022 - Page initiated by Team BoatWiki.

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