The UCC is the Uniform Commercial Code, which was devised to promote uniformity among state laws that govern commercial transactions. Although it is not a binding law, it has served as a model for state laws, and all states have adopted a version of the UCC with certain modifications. Many of the sections in the UCC, which are known as articles or chapters, govern loans or other secured transactions. In these arrangements, a borrower designates an asset as collateral for a loan, and the lender can take possession of the asset used as collateral if the borrower cannot pay the loan. Among other things, the UCC provides requirements for perfecting a security interest, which can prevent disputes involving the priority of lenders when multiple lenders have secured interests in the same asset.