Sec. 9-314. Perfection by control.

241 words·~1 min read·/il/chapter-810/act-5/9-314

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, electronic money, investment property, or letter-of-credit rights or beneficial interests in Illinois land trusts may be perfected by control of the collateral under Section 7-106, 9-104, 9-105A, 9-106, 9-107, 9-107.1, or 9-107A.

(b)Specified collateral: time of perfection by control; continuation of perfection. A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, or letter-of-credit rights or beneficial interests in Illinois land trusts is perfected by control under Section 7-106, 9-104, 9-105A, 9-107, 9-107.1, or 9-107A 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 9-106 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.