Chapter 9 of UCC

Chapter 9 of the Uniform Commercial Code (UCC) governs secured transactions in personal property. It outlines how businesses and individuals can use their assets, like inventory or equipment, as collateral for loans. This means if they default on a loan, lenders can take possession of the collateral. It establishes rules for creating, perfecting, and enforcing security interests, ensuring the rights of lenders and borrowers are clear. Importantly, it provides a public filing system to track these interests, helping to resolve disputes about ownership and priority among creditors.