§ 25-9-314. Perfection by control. - North Carolina Statutes

§ 25‑9‑314. Perfection by control.

(a)        Perfection bycontrol. – A security interest in investment property, deposit accounts, letter‑of‑creditrights, electronic chattel paper, or electronic documents may be perfected bycontrol of the collateral under G.S. 25‑7‑106, 25‑9‑104,25‑9‑105, 25‑9‑106, or 25‑9‑107.

(b)        Specifiedcollateral: time of perfection by control; continuation of perfection. – Asecurity interest in deposit accounts, electronic chattel paper, letter‑of‑creditrights, or electronic documents is perfected by control under G.S. 25‑7‑106,25‑9‑104, 25‑9‑105, or 25‑9‑107 when thesecured party obtains control and remains perfected by control only while thesecured party retains control.

(c)        Investmentproperty: time of perfection by control; continuation of perfection. – Asecurity interest in investment property is perfected by control under G.S. 25‑9‑106from the time the secured party obtains control and remains perfected bycontrol until:

(1)        The secured partydoes not have control; and

(2)        One of the followingoccurs:

a.         If the collateral isa certificated security, the debtor has or acquires possession of the securitycertificate;

b.         If the collateral isan uncertificated security, the issuer has registered or registers the debtoras the registered owner; or

c.         If the collateral isa security entitlement, the debtor is or becomes the entitlement holder. (1997‑181, s. 5; 2000‑169,s. 1; 2006‑112, s. 52.)