Article 9 secured parties

Article 9 refers to a section of law that governs secured parties—those who lend money or extend credit secured by collateral, typically assets like inventory or equipment. When a borrower uses collateral to secure a loan, the secured party has a legal interest in that asset. Article 9 ensures the secured party's rights are protected, allowing them to repossess or sell the collateral if the borrower defaults. Essentially, it provides a standardized legal framework for these secured transactions, clarifying how secured parties can enforce their interests and prioritize claims on collateral.