Also known as:continuous perfection · continuously perfected
Written by attorneys · grounded in primary & secondary sources — see below
A status achieved by a security interest or agricultural lien when it is originally perfected by one method and later perfected by another method without any intervening period when it was unperfected.
Sources & Authorities· 2 primary sources
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Uniform Acts
Study Supplements
How it applies
Common Examples
2
Switch From Filing To Control
Pierce Patterson granted Metro Bank a security interest in payment rights from power contracts. Metro initially perfected by filing a financing statement. Later Metro obtained control through an assignment of an existing control agreement while the filing remained effective. When a competing creditor later asserted an interest, Metro's priority dated from the original filing because perfection continued without interruption.
Possessory Interest Across Jurisdictions
Peak Performance held a possessory security interest in equipment located in State A. After the debtor moved the equipment to State B, Peak maintained possession through an agent in the new jurisdiction. Because possession continued without any gap, Peak's interest remained continuously perfected against later claimants.
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Test Yourself
10
Practice Questions5
Common questions
Frequently Asked
3
Does switching perfection methods destroy continuous perfection?+
No. A security interest remains continuously perfected when one authorized method is replaced by another so long as no period exists when the interest is unperfected. The original perfection date controls priority.
Supporting sources
What happens if a gap occurs between perfection methods?+
The chain breaks. Perfection is no longer continuous and the date of perfection resets to the later method, exposing the interest to intervening creditors during the gap.
Supporting sources
Does continuous perfection apply to agricultural liens?+
Yes. An agricultural lien is perfected continuously when the lien becomes effective after the required filing has already occurred, so perfection dates from the moment of effectiveness.
Supporting sources
Secured TransactionsRights of third parties; perfected and unperfected security interests; rules of priority (§ 9-301, et seq.) · Requirement of filing and steps to be taken for perfection (§§ 9-308 through 9-316; § 9-501, et seq.); assignment of security interest (§§ 9-514, 9-519)UBEFoundational