Security Interests Toolkit

Resources to assist counsel in understanding the issues relating to the creation of security interests in deposit accounts and investment property (including securities accounts and certificated securities), the different methods of perfection of those security interests and the priorities of those security interests under the Uniform Commercial Code.

Practical Law Finance

In a financing, a borrower borrows money from a lender and promises to repay it with interest and to perform certain obligations. In a secured financing, these payment and performance obligations are secured by a security interest ( over all or some of the borrower's assets in favor of the lender. A security interest represents an interest in certain assets which secures payment or performance of an obligation.

A perfected ( security interest means:

  • The lender has rights and remedies against the borrower's assets if the borrower breaches its obligations to the lender.

  • If the borrower goes into bankruptcy, the lender has additional recovery rights against the borrower's assets compared to other creditors of the borrower.

There are many categories of assets in which the borrower can grant a security interest under the Uniform Commercial Code ( (UCC) including, without limitation, general intangibles ( , accounts ( , chattel paper ( , commercial tort claims ( , deposit accounts ( , documents ( , goods ( , instruments ( , securities accounts ( , investment property ( , letter-of-credit rights ( , money and intellectual property ( .

This Toolkit includes continuously maintained resources to provide information on:


Practice Notes


Standard Documents



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