A security interest need only be attached, not perfected, if there are no competing claims for the collateral.

Question

Quizplus · Accepted Answer

If there are no competing claims for the collateral, the security interest is considered valid and enforceable upon attachment (the security agreement is established and the collateral is in possession or control of the secured party) without the need for perfection (filing a UCC-1 financing statement). However, perfection is still recommended to protect against future competing claims.

A Security Interest Need Only Be Attached, Not Perfected, If