Article 9 (UCC)

Article 9 of the Uniform Commercial Code (UCC) governs secured transactions, which involve loans backed by collateral. When a borrower takes out a loan and offers an asset (like a car or equipment) as security, Article 9 outlines how the lender can claim that asset if the borrower fails to repay. It sets rules for creating security interests, how to perfect those interests (making them legally enforceable), and the rights of lenders and borrowers. This framework helps protect both parties in financial agreements by clarifying their rights and responsibilities regarding secured assets.