A security interest can be perfected merely by possession of the collateral by the secured party.

Question

Quizplus · Accepted Answer

This statement is true for certain types of collateral, such as cash, negotiable instruments, and documents of title. Possessing these types of collateral can serve as a form of perfection for security interests. However, for most other types of collateral, perfection requires additional steps such as filing a financing statement or obtaining control over the collateral.

A Security Interest Can Be Perfected Merely by Possession of the Collateral