Quote: I am not a lawyer, but upon reading the U.C.C. Article 3 concerning Negotiable Instruments, does it not say that a negotiable instrument is NOT a security, and thus not a consideration of Article 3, but governed separately in Article 8?
You seem to be totally confused by and misunderstand basic concepts of commerical law, real estate law and securities law.
The term security as used in the UCC most often pertains to a security interest securing an Article 3 debt. The promissory note secures the promise to repay, but a may be further secured by an Article 8 security interest in goods, chattels, other securities and even real property.
The term security has a different meaning within the Securities and Exchange Act.
In the residential mortgage business, the borrower's debt is memorialized by a promissory note and further secured by a mortgage, deed of trust, security deed or similar mortgage security instrument executed by the borrower and securing the real property to the loan.
The mortgage loan, including both the note and the mortgage security instrument is often securitized by the sale or exchange of a pool of such loans into a trust that then issues trust certificates, which are transferrable securities. The mortgage security instruments must not be confused with the securities represented by the trust certificates.
Swindlers often prey upon the ignorance and confusion of distressed borrowers to blur these concepts and create a false impression that the trust is not the rightful owner of the distressed borrower's note and lacks the right to enforce the note. This myth is used in support of a variety of debt elimination scams to swindle money from the borrowers.