§ 10:9-313 — When possession by or delivery to secured party perfects security interest without

§9-313. When possession by or delivery to secured party perfects security interest without
filing
(a) Perfection by possession or delivery. Except as otherwise provided in Subsection
(b) of this Section, a secured party may perfect a security interest in goods, instruments
including collateral mortgage notes, 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 R.S. 10:8-301.
(b) Goods covered by certificate of title. 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 R.S.
10:9-316(d).
(c) Collateral in possession of person other than debtor. 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) Time of perfection by possession; continuation of perfection. 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) Time of perfection by delivery; continuation of perfection. A security interest in
a certificated security in registered form is perfected by delivery when delivery of the
certificated security occurs under R.S. 10:8-301 and remains perfected by delivery until the
debtor obtains possession of the security certificate.
(f) Acknowledgment not required. A person in possession of collateral is not
required to acknowledge that it holds possession for a secured party's benefit.
(g) Effectiveness of acknowledgment; no duties or confirmation. If a person
acknowledges that it holds possession for the secured party's benefit:
(1) the acknowledgment is effective under Subsection (c) or R.S. 10:8-301(a), even
if the acknowledgment violates the rights of a debtor; and
(2) unless the person otherwise agrees or law other than this Chapter 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) Secured party's delivery to person other than debtor. 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) Effect of delivery under Subsection (h); no duties or confirmation. 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 this Chapter otherwise provides.

Legislative History

Acts 1988, No. 528, §1, eff. Jan. 1, 1990; Acts 1989, No. 135, §7, eff. Jan. 1, 1990; Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 1991, No. 377, §4, eff. Jan. 1, 1992. Amended by Acts 1993, No. 948, §3, eff. Jan. 1, 1994; Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2009, No. 207, §5, eff. Jan. 1, 2010; Acts 2024, No. 773, §1.