Legal Question in Business Law in California

Uniform Commercial Code & Rights therein

I previously posted this question (under title ''Uniform Commercial Code and Security Interest''), but the answer given was not what I'm looking for.

Specifically, I need to know if there is any section(s) of the UCC that pertain to what the specific rights are of an entity with perfected security interest in collateral. There is no question of the perfection, the question lies in what that ''perfection'' entitles the legal owner to.

Any information would be greatly appreciated. Thank you for your help.


Asked on 10/09/07, 7:36 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Uniform Commercial Code & Rights therein

Division 9 of the California version of the UCC deals with secured transactions generally. Within that division, sections 9601 to 9629 have to do with rights of the secured party after the debtor's default.

Without more information as to what specifically has happened in your deal, I can at least give you a few general pointers as to where to look within all that law. First, look up section 9607, entitled "collection and enforcement by secured party" and 9609, "secured party's right to take possession after default."

Note also 9610 dealing with what a creditor may do with the collateral after taking possession.

Please note that reading a section of the UCC alone probably does not impart sufficient legal or business knowledge to carry out an enforcement of the security agreement against the collateral. There is a lot of case law and street wisdom applicable to a successful recovery after a default. Please consider getting a lawyer with prior UCC secured-transaction experience to assist you.

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Answered on 10/09/07, 9:51 pm


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