(a) A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper, or electronic documents may be perfected by control of the collateral under Section 7106, 9104, 9105, 9106, or 9107.
(b) A security interest in deposit accounts, electronic chattel paper, letter-of-credit rights, or electronic documents is perfected by control under Section 7106, 9104, 9105, or 9107 when the secured party obtains control and remains perfected by control only while the secured party retains control.
(c) A security interest in investment property is perfected by control under Section 9106 from the time the secured party obtains control and remains perfected by control until both of the following conditions are satisfied:
(1) The secured party does not have control.
(2) One of the following occurs:
(A) If the collateral is a certificated security, the debtor has or acquires possession of the security certificate.
(B) If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner.
(C) If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.
(Amended by Stats. 2006, Ch. 254, Sec. 60. Effective January 1, 2007.)
Last modified: October 25, 2018