When Does a Transaction Fall Under the Uniform Commercial Code?

The Minnesota Supreme Court had to answer that question in Vermillion State Bank v. Tennis Sanitation, LLC, 2022 LEXIS 37: 2022 WL 302629 {February 2, 2022). It was a case of first impression in Minnesota, so the court looked extensively at how the issue had been decided in other states. The factual background was as follows.

In 2010 the bank began lending money to Troje’s Trash Pick-up, Inc. The loans were secured by a security interest in Troje’s tangible assets, such …