Ch 8. Other methods of perfection

Question 1

Perfection by Possession

Answer 1

SI in tangible collateral may be perfected if the secured party takes possession

Question 2

what type of collateral can be perfected by possession? (5)

Answer 2

• money
• goods
• instruments
• negotiable documents
• tangible chattel paper

Question 3

which collateral can only be perfected by possession?

Answer 3

money

Question 4

Perfection by control

Answer 4

SI in intangible collateral may be perfected by taking control of that collateral

perfected as soon as in possession

Question 5

what type of collateral can be perfected by control? (5)

Answer 5

• deposit accounts**
• investment property
• electronic documents
• electronic chattel paper
• letter of credit rights

Question 6

How can perfection by control be obtained for “Deposit Accounts?

Answer 6

one of three ways:

• the secured party is the bank that has the deposit account (lender and bank are the same party)
• the secured party, the bank and the debtor agree in an authenticated record that the lender (secured party) has control over the deposit account
• the secured party can become the bank’s customer with respect to the deposit account.

Question 7

Perfection under a State Certificate of Title Statute can only be done by…

Answer 7

Noting a security interest on that certificate of title

• applies to vehicles that have title (i.e. cars, motorcycle)
• filing, possession, control X suffice, so treat like an exception