AB 687

This bill repeals and recreates the general provisions chapter of the Uniform

Commercial Code (UCC). The UCC governs certain transactions relating to sales,

negotiable instruments, bank deposits and collections, letters of credit, bulk

transfers, documents of title, investment securities, secured transactions, fund

transfers, and leases. The bill revises and updates the general provisions chapter

to better reflect and accommodate changing business practices. The bill also makes

many changes of a technical or nonsubstantive nature, such as reordering and

renumbering sections. In terms of substantive changes to the general provisions

chapter of the UCC, the bill does all of the following:

1. Clarifies that the general provisions chapter applies only to transactions

governed by the UCC and not by other law.

2. Clarifies when other principles of law may be used to supplement UCC

provisions of law.

3. Specifically provides that evidence of "course of performance" may be used

to interpret a contract along with course of dealing and usage of trade.