Law of secured transactions

The Law of Secured Transactions governs how borrowers and lenders handle loans secured by collateral—assets like property or inventory. It sets rules for creating, enforcing, and disposing of security interests, ensuring lenders can recover what they’re owed if borrowers default. Essentially, it provides a legal framework to prioritize claims on assets, reduce risks in lending, and clarify rights and duties of both parties involved in secured loans. This law promotes safe, predictable financial transactions while balancing the interests of borrowers and lenders.