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"Deemed" Security Interests In Ucc Article 9: Avoiding Traps For The Unwary, 14 Depaul Bus. & Com. L.J. 79 (2015), Paul T. Wangerin

UIC Law Open Access Faculty Scholarship

Uniform Commercial Code (“UCC”) Section 1-201(35) provides in its detailed definition of security interests that “security interest” means “an interest in personal property or fixtures which secures payment or performance of an obligation.” Other parts of the UCC demonstrate that two relatively distinct kinds of security interests exist. First, the UCC notes that parties to transactions can create security interests by executing “security agreements.” For convenience sake, the security interests created by security agreements can be called “conventional” or “agreed upon” security interests. Second, various sections of the UCC describe security interests that come into existence by operation of law …