Change of possession of commercial collateral from a debtor to a creditor/secured party perfects the security interest.

Question

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According to the Uniform Commercial Code (UCC), a security interest in commercial collateral is perfected when the creditor or secured party has taken possession of the collateral, among other methods of perfection. Therefore, when there is a change of possession of commercial collateral from a debtor to a creditor/secured party, it perfects the security interest.

Change of Possession of Commercial Collateral from a Debtor to a Creditor/secured