Article 9 of the UCC

Article 9 of the Uniform Commercial Code (UCC) governs secured transactions, which are agreements where a borrower provides collateral to a lender to secure a loan. This article outlines the rules for creating, perfecting, and enforcing security interests in personal property, ensuring that creditors have a legal claim to the collateral if the borrower defaults. It covers various types of collateral, how to properly document these agreements, and the priority of claims among creditors. Essentially, it provides a framework for both lenders and borrowers to understand their rights and responsibilities concerning secured loans.