§ 8.9A-313. When possession by or delivery to secured party perfects securityinterest without filing.
(a) Perfection by possession or delivery. Except as otherwise provided insubsection (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 § 8.8A-301.
(b) Goods covered by certificate of title. With respect to goods covered by acertificate of title issued by this Commonwealth, a secured party may perfecta security interest in the goods by taking possession of the goods only inthe circumstances described in § 8.9A-316 (d).
(c) Collateral in possession of person other than debtor. With respect tocollateral other than certificated securities and goods covered by adocument, a secured party takes possession of collateral in the possession ofa person other than the debtor, the secured party, or a lessee of thecollateral from the debtor in the ordinary course of the debtor's business,when:
(1) the person in possession authenticates a record acknowledging that itholds possession of the collateral for the secured party's benefit; or
(2) the person takes possession of the collateral after having authenticateda record acknowledging that it will hold possession of collateral for thesecured party's benefit.
(d) Time of perfection by possession; continuation of perfection. Ifperfection of a security interest depends upon possession of the collateralby a secured party, perfection occurs no earlier than the time the securedparty takes possession and continues only while the secured party retainspossession.
(e) Time of perfection by delivery; continuation of perfection. A securityinterest in a certificated security in registered form is perfected bydelivery when delivery of the certificated security occurs under § 8.8A-301and remains perfected by delivery until the debtor obtains possession of thesecurity certificate.
(f) Acknowledgment not required. A person in possession of collateral is notrequired to acknowledge that it holds possession for a secured party'sbenefit.
(g) Effectiveness of acknowledgment; no duties or confirmation. If a personacknowledges that it holds possession for the secured party's benefit:
(1) the acknowledgment is effective under subsection (c) or § 8.8A-301 (a),even if the acknowledgment violates the rights of a debtor; and
(2) unless the person otherwise agrees or law other than this title otherwiseprovides, the person does not owe any duty to the secured party and is notrequired to confirm the acknowledgment to another person.
(h) Secured party's delivery to person other than debtor. A secured partyhaving possession of collateral does not relinquish possession by deliveringthe collateral to a person other than the debtor or a lessee of thecollateral from the debtor in the ordinary course of the debtor's business ifthe person was instructed before the delivery or is instructedcontemporaneously 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) Effect of delivery under subsection (h); no duties or confirmation. Asecured party does not relinquish possession, even if a delivery undersubsection (h) violates the rights of a debtor. A person to which collateralis delivered under subsection (h) does not owe any duty to the secured partyand is not required to confirm the delivery to another person unless theperson otherwise agrees or law other than this title otherwise provides.
(1964, c. 219, § 8.9-305; 1973, c. 509; 1984, c. 613; 1996, c. 216, §8.9-115; 1997, c. 343; 2000, c. 1007; 2004, c. 200.)
§ 8.9A-313. When possession by or delivery to secured party perfects securityinterest without filing.
(a) Perfection by possession or delivery. Except as otherwise provided insubsection (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 § 8.8A-301.
(b) Goods covered by certificate of title. With respect to goods covered by acertificate of title issued by this Commonwealth, a secured party may perfecta security interest in the goods by taking possession of the goods only inthe circumstances described in § 8.9A-316 (d).
(c) Collateral in possession of person other than debtor. With respect tocollateral other than certificated securities and goods covered by adocument, a secured party takes possession of collateral in the possession ofa person other than the debtor, the secured party, or a lessee of thecollateral from the debtor in the ordinary course of the debtor's business,when:
(1) the person in possession authenticates a record acknowledging that itholds possession of the collateral for the secured party's benefit; or
(2) the person takes possession of the collateral after having authenticateda record acknowledging that it will hold possession of collateral for thesecured party's benefit.
(d) Time of perfection by possession; continuation of perfection. Ifperfection of a security interest depends upon possession of the collateralby a secured party, perfection occurs no earlier than the time the securedparty takes possession and continues only while the secured party retainspossession.
(e) Time of perfection by delivery; continuation of perfection. A securityinterest in a certificated security in registered form is perfected bydelivery when delivery of the certificated security occurs under § 8.8A-301and remains perfected by delivery until the debtor obtains possession of thesecurity certificate.
(f) Acknowledgment not required. A person in possession of collateral is notrequired to acknowledge that it holds possession for a secured party'sbenefit.
(g) Effectiveness of acknowledgment; no duties or confirmation. If a personacknowledges that it holds possession for the secured party's benefit:
(1) the acknowledgment is effective under subsection (c) or § 8.8A-301 (a),even if the acknowledgment violates the rights of a debtor; and
(2) unless the person otherwise agrees or law other than this title otherwiseprovides, the person does not owe any duty to the secured party and is notrequired to confirm the acknowledgment to another person.
(h) Secured party's delivery to person other than debtor. A secured partyhaving possession of collateral does not relinquish possession by deliveringthe collateral to a person other than the debtor or a lessee of thecollateral from the debtor in the ordinary course of the debtor's business ifthe person was instructed before the delivery or is instructedcontemporaneously 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) Effect of delivery under subsection (h); no duties or confirmation. Asecured party does not relinquish possession, even if a delivery undersubsection (h) violates the rights of a debtor. A person to which collateralis delivered under subsection (h) does not owe any duty to the secured partyand is not required to confirm the delivery to another person unless theperson otherwise agrees or law other than this title otherwise provides.
(1964, c. 219, § 8.9-305; 1973, c. 509; 1984, c. 613; 1996, c. 216, §8.9-115; 1997, c. 343; 2000, c. 1007; 2004, c. 200.)
§ 8.9A-313. When possession by or delivery to secured party perfects securityinterest without filing.
(a) Perfection by possession or delivery. Except as otherwise provided insubsection (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 § 8.8A-301.
(b) Goods covered by certificate of title. With respect to goods covered by acertificate of title issued by this Commonwealth, a secured party may perfecta security interest in the goods by taking possession of the goods only inthe circumstances described in § 8.9A-316 (d).
(c) Collateral in possession of person other than debtor. With respect tocollateral other than certificated securities and goods covered by adocument, a secured party takes possession of collateral in the possession ofa person other than the debtor, the secured party, or a lessee of thecollateral from the debtor in the ordinary course of the debtor's business,when:
(1) the person in possession authenticates a record acknowledging that itholds possession of the collateral for the secured party's benefit; or
(2) the person takes possession of the collateral after having authenticateda record acknowledging that it will hold possession of collateral for thesecured party's benefit.
(d) Time of perfection by possession; continuation of perfection. Ifperfection of a security interest depends upon possession of the collateralby a secured party, perfection occurs no earlier than the time the securedparty takes possession and continues only while the secured party retainspossession.
(e) Time of perfection by delivery; continuation of perfection. A securityinterest in a certificated security in registered form is perfected bydelivery when delivery of the certificated security occurs under § 8.8A-301and remains perfected by delivery until the debtor obtains possession of thesecurity certificate.
(f) Acknowledgment not required. A person in possession of collateral is notrequired to acknowledge that it holds possession for a secured party'sbenefit.
(g) Effectiveness of acknowledgment; no duties or confirmation. If a personacknowledges that it holds possession for the secured party's benefit:
(1) the acknowledgment is effective under subsection (c) or § 8.8A-301 (a),even if the acknowledgment violates the rights of a debtor; and
(2) unless the person otherwise agrees or law other than this title otherwiseprovides, the person does not owe any duty to the secured party and is notrequired to confirm the acknowledgment to another person.
(h) Secured party's delivery to person other than debtor. A secured partyhaving possession of collateral does not relinquish possession by deliveringthe collateral to a person other than the debtor or a lessee of thecollateral from the debtor in the ordinary course of the debtor's business ifthe person was instructed before the delivery or is instructedcontemporaneously 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) Effect of delivery under subsection (h); no duties or confirmation. Asecured party does not relinquish possession, even if a delivery undersubsection (h) violates the rights of a debtor. A person to which collateralis delivered under subsection (h) does not owe any duty to the secured partyand is not required to confirm the delivery to another person unless theperson otherwise agrees or law other than this title otherwise provides.
(1964, c. 219, § 8.9-305; 1973, c. 509; 1984, c. 613; 1996, c. 216, §8.9-115; 1997, c. 343; 2000, c. 1007; 2004, c. 200.)
