Secured Transactions Law

Secured Transactions Law governs how lenders can use, and take back, personal property (like equipment or inventory) used as collateral when loans are made. It provides a legal framework for creating security interests, prioritizing claims among creditors, and ensuring borrowers fulfill obligations. This law clarifies the rights and responsibilities of both parties, helping to reduce disputes and encourage lending by offering lenders assurance that they can recover their money if borrowers default. Overall, it promotes financial stability and certainty in credit transactions involving personal property.