If a lender requires that their loans be secured by all the personal property of their borrower, Article 9 of the Uniform Commercial Code wholly governs this process. If a lender making a loan creates a security interest in collateral under Article 9, and the loan goes into default, it must also foreclose its security interest under the rules of Article 9. Article 9 is complicated and comprehensive.

This CLE course teaches the basics of the four methods of foreclosing a loan. The important element of commercial reasonableness is introduced and explained. In addition, the most popular and utilized method of foreclosure, conducting a public sale is covered in great detail. The presentation is given assuming that a pledge of equity (typically used in a real estate mezzanine loan) is the personal property collateral being foreclosed upon.