Also known as: perfect by filing · perfected by filing · perfection-by-filing · UCC Article 9 filing · financing statement perfection
Written by attorneys · grounded in primary & secondary sources — see 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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Security interests in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, instruments, investment property, or negotiable documents may be perfected by filing.
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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.
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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.
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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.
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