Article 9 — Secured Transactions · Section 9-108
Explore UCC § 9-108, which addresses the definition and classifications of collateral in secured transactions.
Source: U.C.C. § 9-108
In this article, 'collateral' means the property subject to a security interest, including the rights of the debtor to the property.
UCC § 9-108 defines what constitutes 'collateral' in the context of secured transactions. It clarifies the types of property that can be part of a security interest and the rights the debtor has in that property.
The property that is subject to a security interest.
An interest in personal property or fixtures which secures payment or performance of an obligation.
Example 1
A car that a debtor uses to secure a loan is considered collateral under this section.
Example 2
Inventory held by a business as part of a secured loan agreement is classified as collateral.