Perfection

Question 1

When is perfection automatic?

Answer 1

PMSI in consumer goods

Question 2

Who is perfection used against?

Answer 2

Third parties

Question 3

Perfection by Taking Possession

Answer 3

When the secured party takes actual possession of the collateral, security interest is perfect from the MOMENT of possession and continues AS LONG AS possession retained
*General intangibles, deposit accounts, nonnegotiable documents, electronic chattel paper, certificate of title goods, accounts CANNOT be perfected by possession

Question 4

Perfection by Control

Answer 4

• Security interests in investment property, nonconsumer deposit accounts, and electronic chattel paper can be perfected by control
• *Nonconsumer deposit accounts can only be perfected by control