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The law of secured transactions in the United States covers the creation and enforcement of a security interest. Usually, a secured transaction happens when a person or business borrows money for the purpose of acquiring property, including real estate, vehicles or business equipment.

The main purpose of a UCC is to perfect the secured interest of the secured party in personal property collateral. The UCC financing statement is a form that a creditor files to give notice that it has an interest in the personal property of a debtor. A bank, not an entrepreneur, typically files the statement.

The Secured Transactions Register is a filling system, either electronic database or in hard copy based registration system, in which Secured Creditors (Financial Institutions, Leasing Companies and Private Lenders) can give notice of their security interests in the movable goods of an enterprise or individual.

Uniform Commercial Code1 (UCC1) statement is a legal notice filed by creditors in an effort to publicly declare their right to seize assets of debtors who default on loans. UCC1 notices are typically printed in local newspapers, in an effort to publicly express a lender's intent to seize collateralized assets.

Some common types of secured transactions include mortgage and car loans. When a debtor borrows money to purchase a car, the vehicle is the collateral for the loan. The creditor has a security interest in the vehicle and the creditor can repossess and sell the car if payments are not made.

Generally, a secured transaction is a loan or other form of credit transaction in which the lender acquires a secured interest in collateral owned by the borrower and is entitled to foreclose on or repossess the collateral in the event of the borrower's default.