Change of possession of commercial collateral from the debtor to the creditor/secured party perfects the security interest.

Question

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Transfer of possession is one of the methods of perfecting a security interest in commercial collateral, according to the Uniform Commercial Code (UCC). Once the creditor/secured party has possession of the collateral, the security interest is considered perfected.

Change of Possession of Commercial Collateral from the Debtor to the Creditor/secured