SECTION 679.3131. When possession by or delivery to secured party perfects security interest without filing.
Latest version.
1(1) 2Except as otherwise provided in subsection (2), 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 s. 54678.301155.
56(2) 57With 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 s. 95679.3161(4)96.
97(3) 98With 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:
150(a) 151The person in possession authenticates a record acknowledging that it holds possession of the collateral for the secured party’s benefit; or
172(b) 173The person takes possession of the collateral after having authenticated a record acknowledging that the person will hold possession of collateral for the secured party’s benefit.
199(4) 200If 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.
237(5) 238A security interest in a certificated security in registered form is perfected by delivery when delivery of the certificated security occurs under s. 261678.3011262and remains perfected by delivery until the debtor obtains possession of the security certificate.
276(6) 277A person in possession of collateral is not required to acknowledge that the person holds possession for a secured party’s benefit.
298(7) 299If a person acknowledges that the person holds possession for the secured party’s benefit:
313(a) 314The acknowledgment is effective under subsection (3) or s. 323678.3011(1), 324even if the acknowledgment violates the rights of a debtor; and
335(b) 336Unless the person otherwise agrees or law other than this chapter otherwise provides, the person does not owe any duty to the secured party and is not required to confirm the acknowledgment to another person.
371(8) 372A 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:
426(a) 427To hold possession of the collateral for the secured party’s benefit; or
439(b) 440To redeliver the collateral to the secured party.
448(9) 449A secured party does not relinquish possession, even if a delivery under subsection (8) violates the rights of a debtor. A person to whom collateral is delivered under subsection (8) 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 chapter otherwise provides.
