Uniform Commercial Code - Wikipedia

 

uniform commercial code article 9

Illinois Compiled Statutes Table of Contents. This site is maintained for the Illinois General Assembly by the Legislative Information System, Stratton Building, Springfield, Illinois New York Uniform Commercial Code - UCC. This is FindLaw's hosted version of New York Uniform Commercial Code. Use this page to navigate to all sections within Uniform Commercial Code. Expand sections by using the arrow icons. Search New York Codes. Search by Keyword or Citation; Search by Keyword or Citation. Cancel. Article 9 of the Uniform Commercial Code (UCC), as adopted by all fifty states, generally governs secured transactions where security interests are taken in personal property. 1 It regulates creation and enforcement of security interests in movable property, intangible property, and fixtures.


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Secured transactions in the United States are an important part of the law and economy of the country. By enabling lenders to take a security interest in collateral that is, the assets of debtorsthe law of secured transactions provides lenders with assurance of legal relief in case of default by the borrower.

The availability of such remedies encourages lenders to lend capital at lower interest ratesuniform commercial code article 9, which in turn facilitates the free flow of credit and stimulates economic growth. Article 9 of the Uniform Commercial Code UCCas adopted by all fifty statesgenerally governs secured transactions where security interests are taken in personal property.

UCC Article 9 replaced a wildly diverse array of security devices that had evolved in the various states during the 19th and early 20th centuries, in response to the reluctance of U, uniform commercial code article 9.

Transactions where security interests are taken in real property are regulated not by Article 9, but by real property laws that vary among jurisdictions. However, the assignment or uniform commercial code article 9 of a contract secured by real property may be regulated by Article 3 to the extent that the contract is a negotiable instrument. Both must be distinguished from a secured interest in a promissory note that is secured by a mortgage or deed of trust on real property, which is regulated by Article 9.

This latter distinction is important in the context of the sale and purchase of promissory notes secured by real property. There are a variety of situations in which this distinction is important. For example, a non-depository mortgage lender may fund their operations with a warehouse line of creditwhile a distressed loan workout specialist may obtain a line of credit. The first makes loans for the purchase of real property; the second will acquire nonperforming loans at a discount from their face value and then will either renegotiate them or foreclose on the underlying collateral.

In uniform commercial code article 9 situation, the mortgage lender or workout specialist's interest in underlying real property collateral will be secured under state real property law. But their lender's interest in the notes secured by the underlying collateral will be secured under Article 9. Security interests are particularly valuable in bankruptcyuniform commercial code article 9, because creditors who have security interests in a bankrupt debtor's estate take priority over creditors who lack such interests unsecured creditors in the distribution of the debtor's assets.

A security interest becomes enforceable against the collateral as soon as it attaches. Attachment requires three things: i that the debtor have uniform commercial code article 9 in the collateral or the power to convey rights; ii that value be given; and iii in most cases, that the debtor have authenticated a security agreement that adequately describes the collateral.

See U. Subject to some minor restrictions relating to consumer goods and commercial tort claims, a security interest can encumber after-acquired property—that is, it can attach to property the debtor acquires after authentication of the security agreement.

Value can include a new loan or an old debt. Attachment of a security interest uniform commercial code article 9 not ensure that the secured party's interest in the collateral will be superior to the interest of other lienors or subsequent buyers, uniform commercial code article 9, lessees, or licensee. In general, to obtain priority over such other claimants, the security interest must be "perfected.

The most common method of perfection is through filing a financing statement often referred to by its form number: UCC-1 in the appropriate state office usually the office of the Secretary of State in the U. For real property, the creditor records a security instrument such as a mortgage or deed of trust in the county where the real property is located.

From Wikipedia, the free encyclopedia. Attachment and perfection [ edit ] A security interest becomes enforceable against the collateral as soon as it attaches. Accessed February 3, Categories : United States law. Hidden categories: Webarchive template wayback links. Namespaces Article Talk. Views Read Edit View history. Languages Add links. By using this site, you agree to the Terms of Use and Privacy Policy.

 

Secured transactions in the United States - Wikipedia

 

uniform commercial code article 9

 

Article 9 of the Uniform Commercial Code (UCC), as adopted by all fifty states, generally governs secured transactions where security interests are taken in personal property. 1 It regulates creation and enforcement of security interests in movable property, intangible property, and fixtures. The Uniform Commercial Code (UCC), first published in , is one of a number of Uniform Acts that have been established as law with the goal of harmonizing the laws of sales and other commercial transactions across the United States of America (U.S.) through UCC adoption by all 50 states, the District of Columbia, and the Territories of the United States. Uniform Commercial Code (UCC) Article 9 governs secured transactions in personal property. The Amendments to Article 9 modify the existing statute to respond to filing issues and address other matters that have arisen in practice following a decade of experience with the version.