Article 9 — Secured Transactions · Section 9-312
Explore UCC § 9-312, which governs the perfection of security interests in personal property.
Source: U.C.C. § 9-312
A security interest is perfected by filing a financing statement or by other means specified in this section. Perfection is effective against creditors and subsequent buyers under certain conditions.
UCC § 9-312 outlines how a secured party can perfect a security interest in collateral by either filing a financing statement or meeting specific criteria. This perfection provides legal rights against third parties regarding the collateral.
The legal process by which a secured party ensures their security interest is enforceable against third parties.
A document filed to give public notice of a security interest in personal property.
Example 1
A car dealership files a financing statement to perfect its security interest in vehicles sold on credit to buyers.
Example 2
A lender takes a security interest in a borrower's equipment and properly files a financing statement to protect its claim.