Also known as: perfect by filing · perfected by filing · perfection-by-filing · UCC Article 9 filing · financing statement perfection
Written by attorneys — see sources below.
A method of perfecting a security interest in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, instruments, investment property, or negotiable documents by filing a financing statement in the appropriate public office.
Prime Logistics extends credit to Pulse Media and takes a security interest in negotiable promissory notes as collateral. Prime Logistics files a financing statement describing the notes in the proper state office. When Pulse Media later defaults and another creditor claims the notes, Prime Logistics holds a perfected security interest that prevails over the unperfected claim.
Prime Logistics extends credit to Pulse Media and takes a security interest in negotiable bills of lading as collateral. Prime Logistics files a financing statement describing the documents in the proper state office. When Pulse Media later defaults and another creditor claims the documents, Prime Logistics holds a perfected security interest that prevails over the unperfected claim.
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View caseSecurity interests in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, instruments, investment property, or negotiable documents may be perfected by filing.
Supporting sources
Yes. Perfection by filing establishes the secured party's rights against third parties such as other creditors and a bankruptcy trustee, though it does not alter rights between the secured party and the debtor.
The financing statement must be filed in the state where the debtor is located, typically the state of the debtor's chief executive office for a corporation, and in the appropriate office designated by that state's version of Article 9.
The financing statement must include the debtor's name, the secured party's name or a representative, and a description of the collateral that reasonably identifies it.