Generally,when may a security interest be perfected in collateral?
A)By the secured party's filing a financing statement in the designated public office.
B)By the secured party's taking or retaining possession of the collateral.
C)Automatically, on the attachment of the security interest.
D)Temporarily, for a period specified by the Code
E)All of the above, depending on the type of collateral.

Question

Quizplus · Accepted Answer

The method of perfecting a security interest in collateral may vary depending on the type of collateral. Generally, a security interest may be perfected by filing a financing statement in the designated public office (Choice A) or by taking or retaining possession of the collateral (Choice B). In some cases, the security interest may be automatically perfected upon attachment (Choice C). Additionally, the Code may specify a temporary period during which the security interest is perfected (Choice D). Therefore, depending on the type of collateral, any combination of the above methods may be used to perfect a security interest. Hence, the best answer is E, "All of the above, depending on the type of collateral."

Generally,when May a Security Interest Be Perfected in Collateral