When a person or business borrows money, or purchases or leases goods on credit (without paying the full purchase price up-front), the credit extended to the borrower (1) may be secured/collateralized by money or other assets, or (2) may be unsecured. For example, if your business takes out a loan from the bank, the bank will likely require you to pledge certain assets as security or collateral for the loan—and if you default on the loan, the bank may use the legal process (attachment, repossession) to gain ownership of those pledged assets to satisfy the debt.

Other transactions in which a creditor extends credit to your business may be unsecured—such as the bank that issues your business credit card without requiring you to pledge specific assets as collateral in case you fail to make the payments. But even an unsecured creditor can file a lawsuit against you or use other means to collect the debt you agreed to repay. The law of secured transactions is generally governed by the uniform commercial code (UCC), which has been adopted and made the law in some form in most states.

In Oklahoma, the law of secured transactions is governed by Article 9 of the Uniform Commercial Code (UCC), which the state has adopted. When a person or business in Oklahoma borrows money or obtains goods on credit, the creditor may require the debt to be secured by collateral. This means that the borrower pledges assets such as real estate, equipment, or inventory to guarantee repayment of the loan. If the borrower defaults, the creditor has the right to take legal action to repossess or foreclose on the collateral through processes like attachment or repossession. On the other hand, unsecured transactions do not involve specific collateral. Creditors of unsecured debt, such as issuers of business credit cards, do not have a direct claim on the borrower's assets. However, if the borrower fails to repay an unsecured debt, the creditor can still pursue legal action to collect the debt, which may include filing a lawsuit and obtaining a judgment. Once a judgment is obtained, the creditor may use various collection methods, such as garnishment of bank accounts or wages. It's important for businesses to understand the implications of secured versus unsecured credit and to be aware of their rights and obligations under Oklahoma's implementation of the UCC.