554.9305  When possession by secured party perfects security interest without filing.

A security interest in goods, instruments, money, negotiable documents, or chattel paper may be perfected by the secured party's taking possession of the collateral. A security interest in the right to proceeds of a written letter of credit may be perfected by the secured party's taking possession of the letter of credit. If such collateral other than goods covered by a negotiable document is held by a bailee, the secured party is deemed to have possession from the time the bailee receives notification of the secured party's interest. A security interest is perfected by possession from the time possession is taken without a relation back and continues only so long as possession is retained, unless otherwise specified in this Article. The security interest may be otherwise perfected as provided in this Article before or after the period of possession by the secured party.

Section History: Early form

  [C24, 27, 31, 35, 39, § 9968, 10023; C46, 50, 54, 58, 62, § 554.40, 556.12; C66, 71, 73, 75, 77, 79, 81, § 554.9305]

Section History: Recent form

  89 Acts, ch 113, § 51; 96 Acts, ch 1026, § 27, 28; 96 Acts, ch 1138, § 72, 84; 97 Acts, ch 23, §73

Internal References

  Referred to in § 15E.91, 16.26, 16A.9, 554.9302, 554.9303

Footnotes

  1996 amendment by 96 Acts, ch 1138, § 72 takes effect July 1, 1997; 96 Acts, ch 1138, § 84; for provisions governing the continued perfection of security interests that are perfected as of July 1, 1997, see 96 Acts, ch 1138, § 80, 84; for law prior to July 1, 1997, see Code 1995

  1996 amendments by 96 Acts, ch 1026, § 27 apply to letters of credit issued on or after July 1, 1996; see 96 Acts, ch 1026, § 28; for law applicable to letters of credit issued prior to July 1, 1996, see Code 1995


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