Article 9 — Secured Transactions · Section 9-204
Overview of UCC § 9-204, which addresses the creation of security interests in specific types of collateral.
Source: U.C.C. § 9-204
A security interest may attach to collateral that is described by a description, whether or not the description is specific or is by type, as long as it is not defined as a type of collateral excluded from attachment under UCC § 9-109.
UCC § 9-204 outlines how a security interest can be created in collateral by describing the collateral in a security agreement. This section allows for flexibility in how collateral is defined, permitting broader categorizations rather than strict specificity.
An interest in personal property or fixtures that secures payment or performance of an obligation.
Property that is pledged as security for a debt or obligation.
Example 1
A financing statement that describes collateral as 'all assets of the borrower' instead of specifically itemizing each asset.
Example 2
A lender agreeing to a security interest in future inventory or accounts receivable as business expands.