Article 9 — Secured Transactions · Section 9-103
Overview of UCC § 9-103, addressing the definitions and treatment of secured transactions involving goods.
Source: U.C.C. § 9-103
UCC § 9-103 defines specific terms and provides regulations concerning the scope of transactions secured by collateral, outlines the requirements for attachment of a security interest, and discusses what constitutes a security interest in certain types of collateral.
UCC § 9-103 deals with secured transactions and outlines the types of collateral that can be used to secure a loan. It provides guidance on how a security interest can arise and what it means for both creditors and debtors in terms of their rights and obligations.
An interest in personal property or fixtures that secures payment or performance of an obligation.
Property that is subject to a security interest, which may include goods, accounts receivable, and other types of assets.
Example 1
A car loan where the vehicle serves as collateral for the loan—the lender has a security interest in the car until the loan is fully paid.
Example 2
A business taking out a loan and using its inventory as collateral, which gives the lender a security interest in that inventory.