400.9-313. When possession by or delivery to secured party perfects security interest without filing.

MISSOURI STATUTES AND CODES

400.9-313. When possession by or delivery to secured party perfects security interest without filing.

When possession by or delivery to secured party perfects securityinterest without filing.

400.9-313. (a) Except as otherwise provided in subsection (b), asecured party may perfect a security interest in negotiable documents,goods, instruments, money, or tangible chattel paper by taking possessionof the collateral. A secured party may perfect a security interest incertificated securities by taking delivery of the certificated securitiesunder section 400.8-301.

(b) With respect to goods covered by a certificate of title issued bythis state, a secured party may perfect a security interest in the goods bytaking possession of the goods only in the circumstances described insection 400.9-316(d).

(c) With respect to collateral other than certificated securities andgoods covered by a document, a secured party takes possession of collateralin the possession of a person other than the debtor, the secured party, ora lessee of the collateral from the debtor in the ordinary course of thedebtor's business, when:

(1) The person in possession authenticates a record acknowledgingthat it holds possession of the collateral for the secured party's benefit;or

(2) The person takes possession of the collateral after havingauthenticated a record acknowledging that it will hold possession ofcollateral for the secured party's benefit.

(d) If perfection of a security interest depends upon possession ofthe collateral by a secured party, perfection occurs no earlier than thetime the secured party takes possession and continues only while thesecured party retains possession.

(e) A security interest in a certificated security in registered formis perfected by delivery when delivery of the certificated security occursunder section 400.8-301 and remains perfected by delivery until the debtorobtains possession of the security certificate.

(f) A person in possession of collateral is not required toacknowledge that it holds possession for a secured party's benefit.

(g) If a person acknowledges that it holds possession for the securedparty's benefit:

(1) The acknowledgment is effective under subsection (c) or section400.8-301(a), even if the acknowledgment violates the rights of a debtor;and

(2) Unless the person otherwise agrees or law other than this articleotherwise provides, the person does not owe any duty to the secured partyand is not required to confirm the acknowledgment to another person.

(h) A secured party having possession of collateral does notrelinquish possession by delivering the collateral to a person other thanthe debtor or a lessee of the collateral from the debtor in the ordinarycourse of the debtor's business if the person was instructed before thedelivery or is instructed contemporaneously with the delivery:

(1) To hold possession of the collateral for the secured party'sbenefit; or

(2) To redeliver the collateral to the secured party.

(i) A secured party does not relinquish possession, even if adelivery under subsection (h) violates the rights of a debtor. A person towhich collateral is delivered under subsection (h) does not owe any duty tothe secured party and is not required to confirm the delivery to anotherperson unless the person otherwise agrees or law other than this articleotherwise provides.