§ 9314. Perfection by control.

320 words·~1 min read·/pa/title-13/chapter-93/9314

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 7106 (relating to control of electronic document of title), 9104 (relating to control of deposit account), 9106 (relating to control of investment property), 9107 (relating to control of letter-of-credit right) or 9107.1 (relating to control of controllable electronic record, controllable account or controllable payment intangible).

(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 or letter-of-credit rights is perfected by control under section 7106, 9104, 9107 or 9107.1 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 9106 not earlier than the time the secured party obtains control and remains perfected by control until both of the following paragraphs apply:

(1)The secured party does not have control.

(2)One of the following occurs:

(i)If the collateral is a certificated security, the debtor has or acquires possession of the security certificate.

(ii)If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner.

(iii)If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.

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(Apr. 16, 2008, P.L.57, No.13, eff. 60 days; July 1, 2024, P.L.450, No.41, eff. 60 days)

2024 Amendment. See section 1 of Act 41 in the appendix to this title for special provisions relating to findings and declarations.

Cross References. Section 9314 is referred to in sections 9308, 9310, 9312, 9327, 9328, 9329 of this title.

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