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Secured Transactions In The United States




In law, secured transactions are an integral part of the Uniform Commercial Code (UCC). Article 9 of that Code governs personal-property secured transactions in all fifty American States . The provisions of Article 9 supply a predictable way of creating and enforcing security interests in Movable Property , intangible property, and Fixture s. Because of the importance of secured transactions, Commercial Law yers typically have (or claim to have) great familiarity with the provisions of Article 9. Real-property secured transactions are governed not by Article 9 but by real-property laws that are not necessarily uniform from state to state.

Security interests are particularly valuable in Bankruptcy , because those creditors who have security interests in a bankrupt debtor's Estate have priority—i.e., will get paid before—creditors who lack such interests ("unsecured" creditors).


NOTES

  • Even Louisiana , much of whose commercial law is based on Continental Civil Law , and not on the Anglo-America n Common Law from which the UCC ultimately derives, has adopted Article 9 to govern its secured transactions. See La. Rev. Stat. Ann. tit. 10, §§ 9-101 to -710 (West 2004).