Which of the following actions typically allows a party to retain possession of collateral under UCC Article 9?

Under UCC Article 9, a party is able to retain possession of collateral by controlling it, which means having physical possession or a certain level of authority over it. This is significant because possession plays a crucial role in securing a party’s interest in collateral. Control, in this context, can establish a secured party's priority over other creditors, particularly in situations where there may be a risk of debtor insolvency or competing claims.

For instance, if a lender has possession of the collateral as part of a security agreement, they effectively have control and can assert their rights against the debtor or any subsequent parties who might claim interest in the same collateral. This underscores the principle of "self-help" in secured transactions, where the secured party can take steps to safeguard its interests without necessarily going through court proceedings.

Other options, like filing bankruptcy or providing proof of purchase, do not inherently provide the same level of control over collateral as discussed in Article 9. Creating a lien on property, while important for establishing a claim, does not equate to retaining possession or control, as a lien is simply a legal claim against the property without physical possession. Thus, the ability to control the collateral is what allows a party to retain it effectively under UCC Article