Also known as: Article 9 · U.C.C. Article 9 · UCC § 9 · secured transactions · UCC 9
Written by attorneys · grounded in primary & secondary sources — see below
A statutory framework governing the attachment, perfection, priority, and enforcement of security interests in personal property and fixtures as well as certain sales of receivables.
Select any source to read its text and confirm it supports the definition.
Uliana Ustinova originates a loan secured by a mortgage on commercial property and sells the note to Union Steel under a pooling agreement that lists the note but leaves collateral references ambiguous. Union Steel files a financing statement covering its interest in the note. When the borrower defaults, Union Steel enforces the mortgage because its Article 9 filing perfects the interest in the obligation and the mortgage follows automatically.
Universal Motors sells machinery to Ugo Uberti on credit and retains a security interest. After default, Universal Motors repossesses the equipment without prior notice or hearing. Ugo Uberti challenges the seizure, but the self-help repossession satisfies Article 9 requirements because the security agreement authorizes it and no breach of the peace occurs.
Ultra Precision grants a security interest in inventory to Ultrasonic Dynamics. The parties later sign a written waiver of a delivery deadline in the security agreement. Before any reliance, Ultrasonic Dynamics retracts the waiver in writing. The retraction is effective under Article 9 because the security agreement remains executory and no detrimental reliance has occurred.
No. Article 9 excludes landlord liens other than agricultural liens. The exclusion removes the lien from the statute's priority rules, leaving a properly perfected Article 9 security interest to prevail under general principles protecting parties who comply with filing requirements.
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No. Article 9 excludes assignments of claims for wages, salary, or other employee compensation. The wage assignment therefore creates no Article 9 security interest, keeping ordinary compensation transfers outside the filing and priority system.
…and judgment improvidently, in my view, call into question important aspects of the statutes of almost all the States governing secured transactions and the procedure for repossessing personal property, I must dissent for the reasons that follow. First: It is my view that when the federal actions were filed in these cases and the…
…law in subsections (1) and (2), and naturally failed to foresee all the ramifications of the break. The innovations made in Article 9
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An account includes a right to payment for services to be rendered, whether or not earned by performance. Estimate line items on invoices therefore qualify as accounts when the underlying contract obligates the service provider to perform scheduled work, giving the secured party an interest in those payment rights.
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A debtor includes any person having an interest other than a security interest or lien in the collateral. A mechanic who retains possession of removed parts and asserts ownership under an employment arrangement therefore meets the definition because the claim is an ownership interest distinct from any lien.
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No. The definition of account debtor expressly excludes persons obligated on a negotiable instrument even if the instrument evidences chattel paper. Execution of a negotiable promissory note therefore prevents the maker from qualifying as an account debtor regardless of the underlying transaction.
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