UCC is federal law. The state does have a version of the UCC which would be the California Commercial Code. Given the reference to chapters in your question, I would say they are speaking to federal law. The case you cited is state law.

but you said you have a loan. Now you speak of promissory notes. Two often intertwined issues but not necessarily the same thing.

but anyway, for even a promissory note to be a negotiable instrument, it must be unconditional and able to be sold by the holder. I do not know the terms of your promissory note so I could not say whether it fulfills the obligations required to be a negotiable instrument.