Security Interests in a Retail Merchant's Inventory: California Amends the Uniform Commercial Code
When the California Legislature at its I963 session enacted the Uniform Commercial Code,' it added section 9Io2(4),2 which significantly restricts the power of a retail merchant to create security interests in his inventory.3 Not one of the twenty-seven other states enacting the Code has similarly amended it.4 My aims in this brief Comment are (i) to outline the present California law governing the creation of security interests in the inventory of retail merchants, (2) to discuss the impact of section 9I02(4) on this law, (3) to explain the effect on this law of enacting the Code without section 9102(4), and (4) to consider whether the California Legislature, at its I965 session, should repeal section 9102(4).