UCC Article 9

UCC Article 9 governs the rules for secured transactions, where a borrower offers collateral—like goods, equipment, or accounts—to a lender to secure a loan. It provides a standardized legal framework for creating, perfecting, and enforcing security interests in personal property. This ensures clarity about who has rights to the collateral if the borrower defaults, facilitating trust and efficiency in lending and borrowing. Essentially, it helps lenders protect their investment and borrowers understand their obligations when using personal property as security.