What Is an Article 9 Sale?

Article 9 of the Uniform Commercial Code (UCC) provides a framework to allow a secured party to foreclose its security interest in personal property without judicial proceedings. The secured party can dispose of the collateral through a sale, lease, or license, or it may accept the collateral in full or partial satisfaction of the secured debt. Article 9 sales are important tools for secured parties to consider, but whether an Article 9 sale is the best option depends on the facts of each case.

Advantages of Article 9 Sales

The primary advantage of an Article 9 sale is speed. An Article 9 sale may be accomplished in weeks, while judicial process may take months or even years.

Article 9 sales may be more cost effective, particularly if no court involvement is

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