CHAPTER 7: ACCOUNTING, RECORDS, AND ASSOCIATED REGULATIONS
U.S.—UNIFORM COMMERCIAL CODE (UCC) The Uniform Commercial Code (UCC) , a comprehensive code addressing most aspects of commercial law, is generally viewed as one of the most important developments in U.S. law. The development of the UCC brought standardization to laws governing business across the U.S. and the U.S. Virgin Islands. Developed and maintained by the National Conference of Commissioners on Uniform State Laws (also known as The Uniform Law Commission), the UCC is a model code and in of itself has no legal effect. Individual state legislatures must enact it into state law and all have done so, including the District of Columbia, except one, Louisiana (which has, however, adopted parts of the UCC).
There are nine articles of the code, each addressing a particular area: Article 1 – General Provisions Article 2 – Sales { Article 2A – Leases Article 3 – Negotiable Instruments (amended in 2022) Article 4 – Bank Deposits and Collections (amended in 2022) { Article 4A – Funds Transfers (amended in 2012) Article 5 – Letters of Credit Article 6 – Bulk Sales Article 7 –Documents of Title Article 8 – Investment Securities Article 9 – Secured Transactions (amended in 2010 and 2018)
The UCC established consistent definitions, clarified uncertainties, and brought uniformity to state business laws. The uniformity from state to state enables businesses throughout the U.S. to follow consistent practices. The code may be found on the website of Cornell University law School at http://www.law.cornell.edu/ucc/ucc.table.html.
7.10 Unclaimed Property/Escheatment
Many countries have abandoned or unclaimed property laws that require reporting and escheatment of unclaimed property to the state. This includes Australia, Canada, Caribbean countries, Kenya, New Zealand, Philippines, Puerto Rico, United Kingdom, U.S., and the Virgin Islands).
The laws are very different for B2C versus B2B. Make sure you find out what requirements apply according to your type of business, and which country has jurisdiction. Most countries focus on B2C.
Escheatment is actually the remittance of unclaimed property in compliance with unclaimed property law. Abandoned or unclaimed property (of all kinds) is held by the government entity (state, province, etc.), which holds and protects the property on behalf of the owner. Once the holding, or dormancy period, expires and the property remains unclaimed, the governmental entity may claim it.
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