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2007 Minnesota Statutes

This is a historical version of this statute section. Also view the most recent published version.

336.9-313 MS 1998 [Repealed, 2000 c 399 art 1 s 140]
336.9-313 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), a secured party may perfect a security interest in tangible negotiable documents, goods,
instruments, money, or tangible chattel paper 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 section 336.8-301.
(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 section 336.9-316(e).
(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 authenticates 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 authenticated a record
acknowledging that it will hold possession of 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
no 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 section 336.8-301 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 section 336.8-301(a), even if the
acknowledgment violates the rights of a debtor; and
(2) unless the person otherwise agrees or law other than this article 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 article otherwise provides.
History: 2000 c 399 art 1 s 33; 2004 c 162 art 5 s 25

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