Article 9 — Secured Transactions · Section 9-601
An overview of UCC § 9-601 pertaining to secured transactions, focusing on the rights of secured parties after a default.
Source: U.C.C. § 9-601
A secured party has the rights and remedies provided in this part and those provided by the agreement pursuant to which the secured party's security interest was created.
UCC § 9-601 outlines the rights and remedies available to a secured party upon a default by the debtor. This includes the ability to enforce the security interest and pursue any rights provided in the security agreement.
A lender or other entity that holds a security interest in collateral to secure an obligation.
The individual or entity that owes payment or performance under a security agreement.
Example 1
If a borrower defaults on a loan secured by a car, the lender has the right to repossess the vehicle.
Example 2
In a commercial lease where equipment is used as collateral, the leasing company can reclaim the equipment after a tenant's default.