28-9-313. WHEN POSSESSION BY OR DELIVERY TO SECURED PARTY PERFECTS SECURITY INTEREST WITHOUT FILING. (a) Except as otherwise provided in subsection (b) of this section, 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 28-8-301.
(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 section 28-9-316(d).
(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 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) 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) A security interest in a certificated security in registered form is perfected by delivery when delivery of the certificated security occurs under section 28-8-301, 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) of this section or section 28-8-301(1), 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) 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) of this section violates the rights of a debtor. A person to which collateral is delivered under subsection (h) of this section 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.
History:
[28-9-313, added 2001, ch. 208, sec. 2, p. 735; am. 2004, ch. 42, sec. 28, p. 131.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 9 - SECURED TRANSACTIONS
Part 3 - PERFECTION AND PRIORITY
Section 28-9-301 - LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS.
Section 28-9-302 - LAW GOVERNING PERFECTION AND PRIORITY OF AGRICULTURAL LIENS.
Section 28-9-304 - LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN DEPOSIT ACCOUNTS.
Section 28-9-307 - LOCATION OF DEBTOR.
Section 28-9-309 - SECURITY INTEREST PERFECTED UPON ATTACHMENT.
Section 28-9-314 - PERFECTION BY CONTROL.
Section 28-9-315 - SECURED PARTY’S RIGHTS ON DISPOSITION OF COLLATERAL AND IN PROCEEDS.
Section 28-9-316 - EFFECT OF CHANGE IN GOVERNING LAW.
Section 28-9-319 - RIGHTS AND TITLE OF CONSIGNEE WITH RESPECT TO CREDITORS AND PURCHASERS.
Section 28-9-320 - BUYER OF GOODS.
Section 28-9-322A - SECURITY INTERESTS IN CROPS FOR PROVISION OF AGRICULTURAL CHEMICALS.
Section 28-9-323 - FUTURE ADVANCES.
Section 28-9-324 - PRIORITY OF PURCHASE-MONEY SECURITY INTERESTS.
Section 28-9-325 - PRIORITY OF SECURITY INTERESTS IN TRANSFERRED COLLATERAL.
Section 28-9-326 - PRIORITY OF SECURITY INTERESTS CREATED BY NEW DEBTOR.
Section 28-9-327 - PRIORITY OF SECURITY INTERESTS IN DEPOSIT ACCOUNT.
Section 28-9-328 - PRIORITY OF SECURITY INTERESTS IN INVESTMENT PROPERTY.
Section 28-9-329 - PRIORITY OF SECURITY INTERESTS IN LETTER OF CREDIT RIGHT.
Section 28-9-330 - PRIORITY OF PURCHASER OF CHATTEL PAPER OR INSTRUMENT.
Section 28-9-332 - TRANSFER OF MONEY — TRANSFER OF FUNDS FROM DEPOSIT ACCOUNT.
Section 28-9-333 - PRIORITY OF CERTAIN LIENS ARISING BY OPERATION OF LAW.
Section 28-9-334 - PRIORITY OF SECURITY INTERESTS IN FIXTURES AND CROPS.
Section 28-9-335 - ACCESSIONS.
Section 28-9-336 - COMMINGLED GOODS.
Section 28-9-337 - PRIORITY OF SECURITY INTERESTS IN GOODS COVERED BY CERTIFICATE OF TITLE.
Section 28-9-339 - PRIORITY SUBJECT TO SUBORDINATION.
Section 28-9-340 - EFFECTIVENESS OF RIGHT OF RECOUPMENT OR SET-OFF AGAINST DEPOSIT ACCOUNT.
Section 28-9-341 - BANK’S RIGHTS AND DUTIES WITH RESPECT TO DEPOSIT ACCOUNT.
Section 28-9-342 - BANK’S RIGHT TO REFUSE TO ENTER INTO OR DISCLOSE EXISTENCE OF CONTROL AGREEMENT.