ON JULY 1, 2001, revised Article 9 of the Uniform Commercial Code replaced the former Article 9 in New York. Revised Article 9 (Rev. UCC), like its predecessor, “provides a comprehensive scheme for the regulation of security interests in personal property and fixtures.” Rev. UCC �9-101, cmt. 1. This article will highlight several of Revised Article 9′s provisions applicable to a security interest’s enforcement in a commercial secured transaction and discuss how those provisions affect both (a) the rights and duties of the parties to such a transaction and (b) the consequences that may result from a violation or breach of those rights and duties. (Revised Article 9 also includes numerous provisions, not discussed herein, which only apply to a consumer secured transaction.)
Revised Article 9′s enforcement provisions are contained in its Part 6 and consist of 28 sections, a substantial increase from the seven enforcement sections in Part 5 of Former Article 9 (or Former UCC). These provisions delineate the rights and duties of the parties to a secured transaction after a default has occurred. Such parties include the secured party (a holder of a debt secured by a security interest in collateral); the debtor (typically an owner of the collateral); the obligor (a party owing payment of the secured debt, including any secondary obligors); and in many transactions a secondary obligor (also an obligor; for example, a guarantor of the secured debt). Rev. UCC �9-102(a)(28), (59), (71) and (72). Thus, one may be both a debtor and an obligor in a secured transaction, such as where the maker of a promissory note secures the note’s payment by granting the obligee a security interest in property the maker owns.
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