Article 9


DEFINITION of 'Article 9'

An article under the Uniform Commercial Code (UCC) that governs secured transactions. Article 9 encompasses a wide variety of possessory liens and determines the legal right of ownership if a debtor does not meet his or her obligations.

In 2002, Article 9 was revised to substantially modernize and expand the scope of what can be used as collateral to include credit card receivables, electronic chattel paper, accounts receivable and business inventory.


Although Article 9 goes into great detail to incorporate the many loans secured by various types of collateral, there are still many disputes over who has ownership priority of an asset subject to a security interest transaction.

For example, suppose that George brings his computer to be serviced by Mike. Upon completing the repairs, George does not have the funds to pay Mike. In this case, Article 9 states that Mike may keep the computer until payment is received.

  1. Collateralized Loan Obligation ...

    A security backed by a pool of debt, often low-rated corporate ...
  2. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  3. Creditor

    An entity (person or institution) that extends credit by giving ...
  4. Lien

    The legal right of a creditor to sell the collateral property ...
  5. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  6. Loan

    The act of giving money, property or other material goods to ...
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