What is a primary function of UCC Article 9?

The primary function of UCC Article 9 is to create security interests in personal property. It provides a legal framework for secured transactions, allowing lenders to obtain security interests in personal property to secure loans. This ensures that a lender has a claim to specific collateral if the borrower defaults on the loan. The article outlines how security interests can be created, perfected, and enforced, fundamentally shaping the relationships between creditors and debtors.

By establishing clear rules regarding the creation and perfection of security interests, Article 9 facilitates commerce and reduces the risk for lenders, promoting economic activity by providing mechanisms for credit security. This is pivotal in both consumer and commercial transactions, allowing businesses to leverage their assets for capital and offering consumers access to credit based on their assets.

The other options do not encompass the primary focus of Article 9. For instance, while regulating the sale of personal property and establishing buyer protection laws are important legal aspects, they pertain more to different areas of the UCC. Describing leasing transactions, although related to secured interests, falls under different sections and contexts not covered specifically by Article 9.