Certainty, Efficiency, and Realism: Rights in Collateral under Article 9 of the Uniform Commercial Code
DePaul University College of Law
November 1, 1994
North Carolina Law Review, Vol. 73, p. 115, 1994
Article 9 of the Uniform Commercial Code requires that the debtor have "rights in the collateral" for the attachment of a security interest. The drafters, however, left the determination of the phrase's meaning to the courts. This article argues that the requirement of "rights in the collateral" is unnecessary as it relates to tangible goods and should be deleted from Article 9. As an alternative to the uncertainty engendered by the phrase, the article proposes substituting a set of notice and priority rules that more clearly define the rights and obligations of the parties undertaking an Article 9 transaction involving tangible goods. It concludes by observing that Karl Llewellyn's philosophy of Legal Realism would best be served by such an amendment.
Number of Pages in PDF File: 70
Keywords: Article 9, Secured Transactions, Attachment, Rights in Collateral
JEL Classification: K22Accepted Paper Series
Date posted: February 21, 2009
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo5 in 0.781 seconds