MORTGAGE RIGHTS
 The New Foreclosure Defenses: Introduction to the Law Governing Notes
Uniform Commercial Code Article 3: Negotiable Instruments Before we jump into negotiable instruments law, let's talk about the Uniform Commercial Code, which is often referred to as the UCC. The UCC is a set of laws governing commercial transactions. These are the sale of goods, leases of goods, negotiable instruments, bank deposits, fund transfers, letters of credit, bulk sales, warehouse receipts, bills of lading, investment securities and secured transactions. The UCC is intended to be the same in every state, although there are many minor differences and, in the case of New York and secured transactions, a few important differences. For this reason, you must look up your state's version of the UCC. In Wisconsin, you will find the UCC at Wis. Stat. sec 401.101 through 411.901. Making commercial law uniform makes it easier for businesses to transact business in all of the states. If commercial law were not uniform, businesses would have to research the law in every state in which it does business. Negotiable instruments law also makes it easier for businesses to transact business. A "negotiable instrument" is intended to act like cash in some situations. You are very familiar with one type of negotiable instrument, a check. (Did I just show my age? Do people write checks anymore?). I will limit our discussion to notes, since this is a foreclosure defense site. You became the "maker" or "issuer" of the note when you signed it. The note was made payable to the company that lent you the funds for you to buy your house. The company is the "payee." Another party becomes the "payee" by buying the note from the original payee. A transfer of the note from one payee to another is called a "negotiation."
Loans that have been securitized have ALWAYS been negotiated to new payees. Take a look at How Securitization Was Supposed To Work if you need to refresh your recollection. The pattern that is most often seen in securitizations is for the note to be made payable to the original lender, which "endorses" the note-- usually to order, to bearer or in blank -- and sells the note to a new payee. An endorsement is a signature on the instrument. When you receive a check and sign it on the back, you have endorsed the check. There are two general types of endorsement: (1) "to order," "to bearer"or "in blank" and (2) to a specific person or company. The first type of endorsement (to order, to bearer or in blank) gives the person or company that has possession of the note the right to demand payment when due. An endorsement to a specific person, often called a "restrictive" endorsement, only gives the right to demand payment to the party named in the endorsement. An endorsement in blank, by the way, looks like this: Pay to the Order of ______________. Not all notes are negotiable. To be negotiable, a note must be "an unconditional promise or order to pay a fixed amount of money, wit or without interest, or other charges described in the promise or order." The party asking for foreclosure (the lender, servicer or securitization trust) gains two valuable rights if the court decides that your note is negotiable: (1) a presumption that it has the right to enforce the note; and (2) and the right to claim that it is a "holder in due course." A presumption is a conclusion that a fact exists. A "holder in due course" cannot be held liable for any bad acts committed by either the company that made the loan or any of payees before it. The party seeking foreclosure must have the right to enforce the note (demand that the note be paid) to have "standing."( You may see "person entitled to enforce" abbreviated to PETE. ) There are three categories of parties who are entitled to enforce a note, but you most likely will only deal with one of those categories, the "holder" of the note. There are two ways a party can be a holder: (1) be in physical possession of a note endorsed to order, to bearer or in blank; or (2) be in physical possession of a note endorsed to the party that is seeking to enforce the note.
NEXT: Produce the Note
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
 The New Foreclosure Defenses: Introduction to the Law Governing Notes
Uniform Commercial Code Article 3: Negotiable Instruments Before we jump into negotiable instruments law, let's talk about the Uniform Commercial Code, which is often referred to as the UCC. The UCC is a set of laws governing commercial transactions. These are the sale of goods, leases of goods, negotiable instruments, bank deposits, fund transfers, letters of credit, bulk sales, warehouse receipts, bills of lading, investment securities and secured transactions. The UCC is intended to be the same in every state, although there are many minor differences and, in the case of New York and secured transactions, a few important differences. For this reason, you must look up your state's version of the UCC. In Wisconsin, you will find the UCC at Wis. Stat. sec 401.101 through 411.901. Making commercial law uniform makes it easier for businesses to transact business in all of the states. If commercial law were not uniform, businesses would have to research the law in every state in which it does business. Negotiable instruments law also makes it easier for businesses to transact business. A "negotiable instrument" is intended to act like cash in some situations. You are very familiar with one type of negotiable instrument, a check. (Did I just show my age? Do people write checks anymore?). I will limit our discussion to notes, since this is a foreclosure defense site. You became the "maker" or "issuer" of the note when you signed it. The note was made payable to the company that lent you the funds for you to buy your house. The company is the "payee." Another party becomes the "payee" by buying the note from the original payee. A transfer of the note from one payee to another is called a "negotiation." Loans that have been securitized have ALWAYS been negotiated to new payees. Take a look at How Securitization Was Supposed To Work if you need to refresh your recollection. The pattern that is most often seen in securitizations is for the note to be made payable to the original lender, which "endorses" the note-- usually to order, to bearer or in blank -- and sells the note to a new payee. An endorsement is a signature on the instrument. When you receive a check and sign it on the back, you have endorsed the check. There are two general types of endorsement: (1) "to order," "to bearer"or "in blank" and (2) to a specific person or company. The first type of endorsement (to order, to bearer or in blank) gives the person or company that has possession of the note the right to demand payment when due. An endorsement to a specific person, often called a "restrictive" endorsement, only gives the right to demand payment to the party named in the endorsement. An endorsement in blank, by the way, looks like this: Pay to the Order of ______________. Not all notes are negotiable. To be negotiable, a note must be "an unconditional promise or order to pay a fixed amount of money, wit or without interest, or other charges described in the promise or order." The party asking for foreclosure (the lender, servicer or securitization trust) gains two valuable rights if the court decides that your note is negotiable: (1) a presumption that it has the right to enforce the note; and (2) and the right to claim that it is a "holder in due course." A presumption is a conclusion that a fact exists. A "holder in due course" cannot be held liable for any bad acts committed by either the company that made the loan or any of payees before it. The party seeking foreclosure must have the right to enforce the note (demand that the note be paid) to have "standing."( You may see "person entitled to enforce" abbreviated to PETE. ) There are three categories of parties who are entitled to enforce a note, but you most likely will only deal with one of those categories, the "holder" of the note. There are two ways a party can be a holder: (1) be in physical possession of a note endorsed to order, to bearer or in blank; or (2) be in physical possession of a note endorsed to the party that is seeking to enforce the note.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
 The New Foreclosure Defenses: Introduction to the Law Governing Notes
Uniform Commercial Code Article 3: Negotiable Instruments Before we jump into negotiable instruments law, let's talk about the Uniform Commercial Code, which is often referred to as the UCC. The UCC is a set of laws governing commercial transactions. These are the sale of goods, leases of goods, negotiable instruments, bank deposits, fund transfers, letters of credit, bulk sales, warehouse receipts, bills of lading, investment securities and secured transactions. The UCC is intended to be the same in every state, although there are many minor differences and, in the case of New York and secured transactions, a few important differences. For this reason, you must look up your state's version of the UCC. In Wisconsin, you will find the UCC at Wis. Stat. sec 401.101 through 411.901. Making commercial law uniform makes it easier for businesses to transact business in all of the states. If commercial law were not uniform, businesses would have to research the law in every state in which it does business. Negotiable instruments law also makes it easier for businesses to transact business. A "negotiable instrument" is intended to act like cash in some situations. You are very familiar with one type of negotiable instrument, a check. (Did I just show my age? Do people write checks anymore?). I will limit our discussion to notes, since this is a foreclosure defense site. You became the "maker" or "issuer" of the note when you signed it. The note was made payable to the company that lent you the funds for you to buy your house. The company is the "payee." Another party becomes the "payee" by buying the note from the original payee. A transfer of the note from one payee to another is called a "negotiation." Loans that have been securitized have ALWAYS been negotiated to new payees. Take a look at How Securitization Was Supposed To Work if you need to refresh your recollection. The pattern that is most often seen in securitizations is for the note to be made payable to the original lender, which "endorses" the note-- usually to order, to bearer or in blank -- and sells the note to a new payee. An endorsement is a signature on the instrument. When you receive a check and sign it on the back, you have endorsed the check. There are two general types of endorsement: (1) "to order," "to bearer"or "in blank" and (2) to a specific person or company. The first type of endorsement (to order, to bearer or in blank) gives the person or company that has possession of the note the right to demand payment when due. An endorsement to a specific person, often called a "restrictive" endorsement, only gives the right to demand payment to the party named in the endorsement. An endorsement in blank, by the way, looks like this: Pay to the Order of ______________. Not all notes are negotiable. To be negotiable, a note must be "an unconditional promise or order to pay a fixed amount of money, wit or without interest, or other charges described in the promise or order." The party asking for foreclosure (the lender, servicer or securitization trust) gains two valuable rights if the court decides that your note is negotiable: (1) a presumption that it has the right to enforce the note; and (2) and the right to claim that it is a "holder in due course." A presumption is a conclusion that a fact exists. A "holder in due course" cannot be held liable for any bad acts committed by either the company that made the loan or any of payees before it. The party seeking foreclosure must have the right to enforce the note (demand that the note be paid) to have "standing."( You may see "person entitled to enforce" abbreviated to PETE. ) There are three categories of parties who are entitled to enforce a note, but you most likely will only deal with one of those categories, the "holder" of the note. There are two ways a party can be a holder: (1) be in physical possession of a note endorsed to order, to bearer or in blank; or (2) be in physical possession of a note endorsed to the party that is seeking to enforce the note.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
 The New Foreclosure Defenses: Introduction to the Law Governing Notes
Uniform Commercial Code Article 3: Negotiable Instruments Before we jump into negotiable instruments law, let's talk about the Uniform Commercial Code, which is often referred to as the UCC. The UCC is a set of laws governing commercial transactions. These are the sale of goods, leases of goods, negotiable instruments, bank deposits, fund transfers, letters of credit, bulk sales, warehouse receipts, bills of lading, investment securities and secured transactions. The UCC is intended to be the same in every state, although there are many minor differences and, in the case of New York and secured transactions, a few important differences. For this reason, you must look up your state's version of the UCC. In Wisconsin, you will find the UCC at Wis. Stat. sec 401.101 through 411.901. Making commercial law uniform makes it easier for businesses to transact business in all of the states. If commercial law were not uniform, businesses would have to research the law in every state in which it does business. Negotiable instruments law also makes it easier for businesses to transact business. A "negotiable instrument" is intended to act like cash in some situations. You are very familiar with one type of negotiable instrument, a check. (Did I just show my age? Do people write checks anymore?). I will limit our discussion to notes, since this is a foreclosure defense site. You became the "maker" or "issuer" of the note when you signed it. The note was made payable to the company that lent you the funds for you to buy your house. The company is the "payee." Another party becomes the "payee" by buying the note from the original payee. A transfer of the note from one payee to another is called a "negotiation." Loans that have been securitized have ALWAYS been negotiated to new payees. Take a look at How Securitization Was Supposed To Work if you need to refresh your recollection. The pattern that is most often seen in securitizations is for the note to be made payable to the original lender, which "endorses" the note-- usually to order, to bearer or in blank -- and sells the note to a new payee. An endorsement is a signature on the instrument. When you receive a check and sign it on the back, you have endorsed the check. There are two general types of endorsement: (1) "to order," "to bearer"or "in blank" and (2) to a specific person or company. The first type of endorsement (to order, to bearer or in blank) gives the person or company that has possession of the note the right to demand payment when due. An endorsement to a specific person, often called a "restrictive" endorsement, only gives the right to demand payment to the party named in the endorsement. An endorsement in blank, by the way, looks like this: Pay to the Order of ______________. Not all notes are negotiable. To be negotiable, a note must be "an unconditional promise or order to pay a fixed amount of money, wit or without interest, or other charges described in the promise or order." The party asking for foreclosure (the lender, servicer or securitization trust) gains two valuable rights if the court decides that your note is negotiable: (1) a presumption that it has the right to enforce the note; and (2) and the right to claim that it is a "holder in due course." A presumption is a conclusion that a fact exists. A "holder in due course" cannot be held liable for any bad acts committed by either the company that made the loan or any of payees before it. The party seeking foreclosure must have the right to enforce the note (demand that the note be paid) to have "standing."( You may see "person entitled to enforce" abbreviated to PETE. ) There are three categories of parties who are entitled to enforce a note, but you most likely will only deal with one of those categories, the "holder" of the note. There are two ways a party can be a holder: (1) be in physical possession of a note endorsed to order, to bearer or in blank; or (2) be in physical possession of a note endorsed to the party that is seeking to enforce the note.
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.  MORTGAGE RIGHTS