§490:9-313  When possession by or delivery
to secured party perfects security interest without filing.  (a)  Except as
otherwise provided in subsection (b), a secured party may perfect a security
interest in tangible negotiable documents, goods, instruments, money, or
tangible chattel paper by taking possession of the collateral.  A secured party
may perfect a security interest in certificated securities by taking delivery
of the certificated securities under section 490:8-301.



(b)  With respect to goods covered by a
certificate of title issued by this State, a secured party may perfect a
security interest in the goods by taking possession of the goods only in the
circumstances described in section 490:9-316(d).



(c)  With respect to collateral other than certificated
securities and goods covered by a document, a secured party takes possession of
collateral in the possession of a person other than the debtor, the secured
party, or a lessee of the collateral from the debtor in the ordinary course of
the debtor's business, when:



(1)  The person in possession authenticates a record
acknowledging that it holds possession of the collateral for the secured
party's benefit; or



(2)  The person takes possession of the collateral
after having authenticated a record acknowledging that it will hold possession
of collateral for the secured party's benefit.



(d)  If perfection of a security interest
depends upon possession of the collateral by a secured party, perfection occurs
no earlier than the time the secured party takes possession and continues only
while the secured party retains possession.



(e)  A security interest in a certificated
security in registered form is perfected by delivery when delivery of the
certificated security occurs under section 490:8-301 and remains perfected by
delivery until the debtor obtains possession of the security certificate.



(f)  A person in possession of collateral is
not required to acknowledge that it holds possession for a secured party's
benefit.



(g)  If a person acknowledges that it holds
possession for the secured party's benefit:



(1)  The acknowledgment is effective under subsection
(c) or section 490:8-301(a), even if the acknowledgment violates the rights of
a debtor; and



(2)  Unless the person otherwise agrees or law other than
this article otherwise provides, the person does not owe any duty to the
secured party and is not required to confirm the acknowledgment to another
person.



(h)  A secured party having possession of
collateral does not relinquish possession by delivering the collateral to a
person other than the debtor or a lessee of the collateral from the debtor in
the ordinary course of the debtor's business if the person was instructed
before the delivery or is instructed contemporaneously with the delivery:



(1)  To hold possession of the collateral for the
secured party's benefit; or



(2)  To redeliver the collateral to the secured party.



(i)  A secured party does not relinquish
possession, even if a delivery under subsection (h) violates the rights of a
debtor.  A person to which collateral is delivered under subsection (h) does
not owe any duty to the secured party and is not required to confirm the
delivery to another person unless the person otherwise agrees or law other than
this article otherwise provides. [L 2000, c 241, pt of §1; am L 2004, c 163,
§28]