Perfection by investment of collateral is one of the methods of perfecting a security interest under the Uniform Commercial Code (UCC).

Question

Quizplus · Accepted Answer

Perfection by investment of collateral is not a recognized method under the UCC. Perfection is typically achieved through filing a financing statement, possession of the collateral, control (for certain types of collateral), or automatic perfection in some cases (e.g., PMSI in consumer goods).

Perfection by Investment of Collateral Is One of the Methods