§ 25-9-312. Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; perfection - North Carolina Statutes

§ 25‑9‑312. Perfection of security interests in chattel paper, deposit accounts, documents,goods covered by documents, instruments, investment property, letter‑of‑creditrights, and money; perfection by permissive filing; temporary perfectionwithout filing or transfer of possession.

(a)        Perfection byfiling permitted. – A security interest in chattel paper, negotiable documents,instruments, or investment property may be perfected by filing.

(b)        Control orpossession of certain collateral. – Except as otherwise provided in G.S. 25‑9‑315(c)and (d) for proceeds:

(1)        A security interestin a deposit account may be perfected only by control under G.S. 25‑9‑314;

(2)        And except asotherwise provided in G.S. 25‑9‑308(d), a security interest in aletter‑of‑credit right may be perfected only by control under G.S.25‑9‑314; and

(3)        A security interestin money may be perfected only by the secured party's taking possession underG.S. 25‑9‑313.

(c)        Goods covered bynegotiable document. – While goods are in the possession of a bailee that hasissued a negotiable document covering the goods:

(1)        A security interestin the goods may be perfected by perfecting a security interest in thedocument; and

(2)        A security interestperfected in the document has priority over any security interest that becomesperfected in the goods by another method during that time.

(d)        Goods covered bynonnegotiable document. – While goods are in the possession of a bailee thathas issued a nonnegotiable document covering the goods, a security interest inthe goods may be perfected by:

(1)        Issuance of adocument in the name of the secured party;

(2)        The bailee's receiptof notification of the secured party's interest; or

(3)        Filing as to thegoods.

(e)        Temporaryperfection: new value. – A security interest in certificated securities,negotiable documents, or instruments is perfected without filing or the takingof possession or control for a period of 20 days from the time it attaches tothe extent that it arises for new value given under an authenticated securityagreement.

(f)         Temporaryperfection: goods or documents made available to debtor. – A perfected securityinterest in a negotiable document or goods in possession of a bailee, otherthan one that has issued a negotiable document for the goods, remains perfectedfor 20 days without filing if the secured party makes available to the debtorthe goods or documents representing the goods for the purpose of:

(1)        Ultimate sale orexchange; or

(2)        Loading, unloading,storing, shipping, transshipping, manufacturing, processing, or otherwisedealing with them in a manner preliminary to their sale or exchange.

(g)        Temporaryperfection: delivery of security certificate or instrument to debtor. – Aperfected security interest in a certificated security or instrument remainsperfected for 20 days without filing if the secured party delivers the securitycertificate or instrument to the debtor for the purpose of:

(1)        Ultimate sale orexchange; or

(2)        Presentation,collection, enforcement, renewal, or registration of transfer.

(h)        Expiration oftemporary perfection. – After the 20‑day period specified in subsection(e), (f), or (g) of this section expires, perfection depends upon compliancewith this Article. (1997‑181,s. 5; 2000‑169, s. 1; 2006‑112, s. 50.)