Also known as foreclosure. A secured lender's act to terminate a debtor's interest in collateral.

In addition to its contractual rights under the loan documents and its rights in the courts, the secured party has rights upon a default by the debtor under Article 9 of the UCC. The secured party's rights may be exercised using judicial and nonjudicial enforcement and may involve foreclosure on the collateral. The lender can foreclose by taking title and possession of the collateral or by forcing a sale of the collateral. For more information on foreclosure, see Practice Notes, Lender's Remedies and Enforcement Issues: Remedies under the UCC, Typical Remedies set out in the Collateral Documents, and Borrower's Defenses and Borrower Defaults and Lender Remedies in Commercial Real Estate Loans.