"Perfection" is required before the secured party can repossess the collateral.

Question

Quizplus · Accepted Answer

"Perfection" is not required before the secured party can repossess the collateral. The secured party only needs to have a valid security interest and follow the legal procedures for repossession outlined in the security agreement or UCC. However, perfection is required for the secured party to have priority over other creditors with conflicting claims to the collateral.

"Perfection" Is Required Before the Secured Party Can Repossess the Collateral