Article 9 sale refers to a type of sale under the Uniform Commercial Code (UCC) in the United States. Article 9 of the UCC governs secured transactions, which are transactions in which a borrower grants a security interest in collateral to a lender as security for a loan.
In an Article 9 sale, the lender sells the collateral to a buyer to recover the outstanding debt owed by the borrower. This type of sale typically occurs after the borrower has defaulted on the loan and the lender has repossessed the collateral.
The UCC provides rules and procedures for an Article 9 sale, including notice requirements, the time and place of the sale, and the rights and responsibilities of the buyer and the seller. The sale is usually conducted by public auction, but it can also be conducted through private sale.
The purpose of Article 9 is to provide a clear and efficient process for lenders to recover the value of the collateral when a borrower defaults on a loan. It also provides protection for buyers of the collateral by establishing clear rules for the sale and transfer of ownership.
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