Learn about the five main ways a creditor can perfect its attached security interest: filing a financing statement, possession of the collateral, control of the collateral, automatic perfection, and a state’s certificate of title system.
In this lesson, we’ll learn the five main ways a creditor can perfect an attached security interest.
Recall that the two most important steps that a creditor must take to create an enforceable security interest under Article 9 are attachment and perfection. This lesson is about the second step, perfection. Perfection isn’t so much about the secured creditor’s rights against the debtor as it is about the secured creditor’s priority relative to others with possible claims...