Section 7-9A-314 Perfection by Control.
213 words·~1 min read·
/al/title-7-commercial-code/division-2-perfection/7-9a-314·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Perfection by control. A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, investment property, or letter-of-credit rights may be perfected by control of the collateral under Section 7-7-106, 7-9A-104,, 7-9A-106, 7-9A-107, or 7-9A-107A.
(b)Specified collateral: Time of perfection by control; continuation of perfection. A security interest incontrollable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, or letter-of-credit rights is perfected by control under Section 7-7-106, 7-9A-104, 7-9A-107, or 7-9A-107A not earlier than the time the secured party obtains control and remains perfected by control only while the secured party retains control.
(c)Investment property: Time of perfection by control; continuation of perfection. A security interest in investment property is perfected by control under Section 7-9A-106 not earlier than the time the secured party obtains control and remains perfected by control until:
(1)the secured party does not have control; and
(2)one of the following occurs:
(A)if the collateral is a certificated security, the debtor has or acquires possession of the security certificate;
(B)if the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or
(C)if the collateral is a security entitlement, the debtor is or becomes the entitlement holder.