What is the primary source of law governing secured transactions?

The primary source of law governing secured transactions is UCC Article 9. This article specifically addresses the creation, perfection, priority, and enforcement of security interests in personal property. It provides a comprehensive legal framework that applies to various types of collateral, allowing secured parties to protect their interests with respect to the debtor's assets.

UCC Article 9 is vital because it organizes the rights and duties of parties involved in secured transactions, including debtors, secured parties, and generally third parties. It outlines how security interests can be created, the methods by which they can be perfected (such as filing a financing statement), and the priorities between competing security interests. The clarity and structure provided by this article are integral to the effectiveness of secured lending in both commercial and consumer contexts.

Knowing that other options do not apply specifically to secured transactions helps contextualize the emphasis on Article 9. For example, Article 11 is not a recognized part of the UCC concerning secured transactions, and Trusts and Estates Law pertains more to the management and transmission of an individual's estate rather than the principles governing secured debt. Additionally, Commercial Paper Law deals primarily with negotiable instruments (like checks and promissory notes) rather than the creation and enforcement of security interests in personal property