§ 26-1-9.1-313 — When possession by or delivery to secured party perfects security interest without filing

Indiana § 26-1-9.1-313

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

(a) Except as otherwise provided in
subsection (b), a secured party may perfect a security interest in goods,
instruments, negotiable tangible documents, or money, by taking
possession of the collateral. A secured party may perfect a security
interest in certificated securities by taking delivery of the certificated
securities under IC 26-1-8.1-301.
(b) With respect to goods covered by a certificate of title issued by
this state, a secured party may perfect a security interest in the goods
by taking possession of the goods only in the circumstances described
in IC 26-1-9.1-316(e).
(c) With respect to collateral other than certificated securities and
goods covered by a document, a secured party takes possession of
collateral in the possession of a person other than the debtor, the
secured party, or a lessee of the collateral from the debtor in the
ordinary course of the debtor's business, when:
(1) the person in possession signs a record acknowledging that it
holds possession of the collateral for the secured party's benefit;
or
(2) the person takes possession of the collateral after having
signed a record acknowledging that it will hold possession of the
collateral for the secured party's benefit.
(d) If perfection of a security interest depends upon possession of
the collateral by a secured party, perfection occurs not earlier than the
time the secured party takes possession and continues only while the
secured party retains possession.
(e) A security interest in a certificated security in registered form is
perfected by delivery when delivery of the certificated security occurs
under IC 26-1-8.1-301 and remains perfected by delivery until the
debtor obtains possession of the security certificate.
(f) A person in possession of collateral is not required to
acknowledge that it holds possession for a secured party's benefit.
(g) If a person acknowledges that it holds possession for the secured
party's benefit:
(1) the acknowledgment is effective under subsection (c) or IC 26-1-8.1-301(a), even if the acknowledgment violates the rights
of a debtor; and
(2) unless the person otherwise agrees or a law other than IC 26-1-9.1 otherwise provides, the person does not owe any duty to
the secured party and is not required to confirm the
acknowledgment to another person.
(h) A secured party having possession of collateral does not
relinquish possession by delivering the collateral to a person other than
the debtor or a lessee of the collateral from the debtor in the ordinary
course of the debtor's business if the person was instructed before the
delivery or is instructed contemporaneously with the delivery:
(1) to hold possession of the collateral for the secured party's
benefit; or
(2) to redeliver the collateral to the secured party.
(i) A secured party does not relinquish possession, even if a delivery
under subsection (h) violates the rights of a debtor. A person to which
collateral is delivered under subsection (h) does not owe any duty to
the secured party and is not required to confirm the delivery to another
person unless the person otherwise agrees or law other than IC 26-1-9.1
otherwise provides.

Legislative History

As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.72; P.L.199-2023, SEC.58.