How is a "security interest" defined under UCC Article 9?

A "security interest" under UCC Article 9 is defined as an interest in personal property or fixtures that secures payment or performance of an obligation. This definition is crucial because it encompasses a range of interests that a secured party may have in collateral—essentially any personal property or fixture that is pledged by a debtor to secure a loan.

When a security interest is created, it grants the creditor certain rights against the debtor’s property. These rights come into play if the debtor defaults on their obligations. The secured party can then enforce their interest by reclaiming the collateral or pursuing other remedies as specified under the UCC. This framework is essential for providing predictability in commercial transactions and enabling lenders to have some assurance regarding the repayment of loans.

The other options suggest interests that fall outside the scope of UCC Article 9. For instance, an interest in real property pertains to the laws governing real estate rather than personal property or fixtures, and a lien on income or claims to future earnings does not fit within the definitions provided by UCC Article 9 regarding security interests. Thus, the correct definition directly relates to the context and types of collateral that are pertinent to secured transactions under the UCC.