§ 6A-9-313 When possession by or deliveryto secured party perfects security interest without filing. – (a) Perfection by possession or delivery. Except as otherwise providedin subsection (b), a secured party may perfect a security interest in tangiblenegotiable documents, goods, instruments, money, or tangible chattel paper bytaking possession of the collateral. A secured party may perfect a securityinterest in certificated securities by taking delivery of the certificatedsecurities under § 6A-8-301.
(b) Goods covered by certificate of title. Withrespect to goods covered by a certificate of title issued by this State, asecured party may perfect a security interest in the goods by taking possessionof the goods only in the circumstances described in § 6A-9-316(d).
(c) Collateral in possession of person other thandebtor. With respect to collateral other than certificated securities andgoods covered by a document, a secured party takes possession of collateral inthe possession of a person other than the debtor, the secured party, or alessee of the collateral from the debtor in the ordinary course of the debtor'sbusiness, when:
(1) The person in possession authenticates a recordacknowledging that it holds possession of the collateral for the securedparty's benefit; or
(2) The person takes possession of the collateral afterhaving authenticated a record acknowledging that it will hold possession ofcollateral for the secured party's benefit.
(d) Time of perfection by possession; continuation ofperfection. If perfection of a security interest depends upon possession ofthe collateral by a secured party, perfection occurs no earlier than the timethe secured party takes possession and continues only while the secured partyretains possession.
(e) Time of perfection by delivery; continuation ofperfection. A security interest in a certificated security in registeredform is perfected by delivery when delivery of the certificated security occursunder § 6A-8-301 and remains perfected by delivery until the debtorobtains possession of the security certificate.
(f) Acknowledgment not required. A person inpossession of collateral is not required to acknowledge that it holdspossession for a secured party's benefit.
(g) Effectiveness of acknowledgment; no duties orconfirmation. If a person acknowledges that it holds possession for thesecured party's benefit:
(1) The acknowledgment is effective under subsection (c) or§ 6A-8-301(a), even if the acknowledgment violates the rights of a debtor;and
(2) Unless the person otherwise agrees or law other than thischapter otherwise provides, the person does not owe any duty to the securedparty and is not required to confirm the acknowledgment to another person.
(h) Secured party's delivery to person other thandebtor. A secured party having possession of collateral does not relinquishpossession by delivering the collateral to a person other than the debtor or alessee of the collateral from the debtor in the ordinary course of the debtor'sbusiness if the person was instructed before the delivery or is instructedcontemporaneously with the delivery:
(1) To hold possession of the collateral for the securedparty's benefit; or
(2) To redeliver the collateral to the secured party.
(i) Effect of delivery under subsection (h); no duties orconfirmation. A secured party does not relinquish possession, even if adelivery under subsection (h) violates the rights of a debtor. A person towhich collateral is delivered under subsection (h) does not owe any duty to thesecured party and is not required to confirm the delivery to another personunless the person otherwise agrees or law other than this chapter otherwiseprovides.
§ 6A-9-313 When possession by or deliveryto secured party perfects security interest without filing. – (a) Perfection by possession or delivery. Except as otherwise providedin subsection (b), a secured party may perfect a security interest in tangiblenegotiable documents, goods, instruments, money, or tangible chattel paper bytaking possession of the collateral. A secured party may perfect a securityinterest in certificated securities by taking delivery of the certificatedsecurities under § 6A-8-301.
(b) Goods covered by certificate of title. Withrespect to goods covered by a certificate of title issued by this State, asecured party may perfect a security interest in the goods by taking possessionof the goods only in the circumstances described in § 6A-9-316(d).
(c) Collateral in possession of person other thandebtor. With respect to collateral other than certificated securities andgoods covered by a document, a secured party takes possession of collateral inthe possession of a person other than the debtor, the secured party, or alessee of the collateral from the debtor in the ordinary course of the debtor'sbusiness, when:
(1) The person in possession authenticates a recordacknowledging that it holds possession of the collateral for the securedparty's benefit; or
(2) The person takes possession of the collateral afterhaving authenticated a record acknowledging that it will hold possession ofcollateral for the secured party's benefit.
(d) Time of perfection by possession; continuation ofperfection. If perfection of a security interest depends upon possession ofthe collateral by a secured party, perfection occurs no earlier than the timethe secured party takes possession and continues only while the secured partyretains possession.
(e) Time of perfection by delivery; continuation ofperfection. A security interest in a certificated security in registeredform is perfected by delivery when delivery of the certificated security occursunder § 6A-8-301 and remains perfected by delivery until the debtorobtains possession of the security certificate.
(f) Acknowledgment not required. A person inpossession of collateral is not required to acknowledge that it holdspossession for a secured party's benefit.
(g) Effectiveness of acknowledgment; no duties orconfirmation. If a person acknowledges that it holds possession for thesecured party's benefit:
(1) The acknowledgment is effective under subsection (c) or§ 6A-8-301(a), even if the acknowledgment violates the rights of a debtor;and
(2) Unless the person otherwise agrees or law other than thischapter otherwise provides, the person does not owe any duty to the securedparty and is not required to confirm the acknowledgment to another person.
(h) Secured party's delivery to person other thandebtor. A secured party having possession of collateral does not relinquishpossession by delivering the collateral to a person other than the debtor or alessee of the collateral from the debtor in the ordinary course of the debtor'sbusiness if the person was instructed before the delivery or is instructedcontemporaneously with the delivery:
(1) To hold possession of the collateral for the securedparty's benefit; or
(2) To redeliver the collateral to the secured party.
(i) Effect of delivery under subsection (h); no duties orconfirmation. A secured party does not relinquish possession, even if adelivery under subsection (h) violates the rights of a debtor. A person towhich collateral is delivered under subsection (h) does not owe any duty to thesecured party and is not required to confirm the delivery to another personunless the person otherwise agrees or law other than this chapter otherwiseprovides.
§ 6A-9-313 When possession by or deliveryto secured party perfects security interest without filing. – (a) Perfection by possession or delivery. Except as otherwise providedin subsection (b), a secured party may perfect a security interest in tangiblenegotiable documents, goods, instruments, money, or tangible chattel paper bytaking possession of the collateral. A secured party may perfect a securityinterest in certificated securities by taking delivery of the certificatedsecurities under § 6A-8-301.
(b) Goods covered by certificate of title. Withrespect to goods covered by a certificate of title issued by this State, asecured party may perfect a security interest in the goods by taking possessionof the goods only in the circumstances described in § 6A-9-316(d).
(c) Collateral in possession of person other thandebtor. With respect to collateral other than certificated securities andgoods covered by a document, a secured party takes possession of collateral inthe possession of a person other than the debtor, the secured party, or alessee of the collateral from the debtor in the ordinary course of the debtor'sbusiness, when:
(1) The person in possession authenticates a recordacknowledging that it holds possession of the collateral for the securedparty's benefit; or
(2) The person takes possession of the collateral afterhaving authenticated a record acknowledging that it will hold possession ofcollateral for the secured party's benefit.
(d) Time of perfection by possession; continuation ofperfection. If perfection of a security interest depends upon possession ofthe collateral by a secured party, perfection occurs no earlier than the timethe secured party takes possession and continues only while the secured partyretains possession.
(e) Time of perfection by delivery; continuation ofperfection. A security interest in a certificated security in registeredform is perfected by delivery when delivery of the certificated security occursunder § 6A-8-301 and remains perfected by delivery until the debtorobtains possession of the security certificate.
(f) Acknowledgment not required. A person inpossession of collateral is not required to acknowledge that it holdspossession for a secured party's benefit.
(g) Effectiveness of acknowledgment; no duties orconfirmation. If a person acknowledges that it holds possession for thesecured party's benefit:
(1) The acknowledgment is effective under subsection (c) or§ 6A-8-301(a), even if the acknowledgment violates the rights of a debtor;and
(2) Unless the person otherwise agrees or law other than thischapter otherwise provides, the person does not owe any duty to the securedparty and is not required to confirm the acknowledgment to another person.
(h) Secured party's delivery to person other thandebtor. A secured party having possession of collateral does not relinquishpossession by delivering the collateral to a person other than the debtor or alessee of the collateral from the debtor in the ordinary course of the debtor'sbusiness if the person was instructed before the delivery or is instructedcontemporaneously with the delivery:
(1) To hold possession of the collateral for the securedparty's benefit; or
(2) To redeliver the collateral to the secured party.
(i) Effect of delivery under subsection (h); no duties orconfirmation. A secured party does not relinquish possession, even if adelivery under subsection (h) violates the rights of a debtor. A person towhich collateral is delivered under subsection (h) does not owe any duty to thesecured party and is not required to confirm the delivery to another personunless the person otherwise agrees or law other than this chapter otherwiseprovides.
