(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 under section 8301 (relating to delivery).
(b) Goods covered by certificate of title.--With respect to goods covered by a certificate of title issued by the Commonwealth, a secured party may perfect a security interest in the goods by taking possession of the goods only in the circumstances described in section 9316(d) (relating to effect of change in governing law).
(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 the person 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 the person 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 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 8301 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 the person holds possession for a secured party's benefit.
(g) Effectiveness of acknowledgment; no duties or confirmation.--If a person acknowledges that the person holds possession for the secured party's benefit:
(1) the acknowledgment is effective under subsection (c) or section 8301(a) (relating to delivery of certificated security) even if the acknowledgment violates the rights of a debtor; and
(2) unless the person otherwise agrees or law other than this division 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 division otherwise provides.
(Apr. 16, 2008, P.L.57, No.13, eff. 60 days; June 27, 2013, P.L.154, No.30, eff. July 1, 2013)
2013 Amendment. Act 30 amended subsec. (b).
2008 Amendment. Act 13 amended subsec. (a).
Cross References. Section 9313 is referred to in sections 9203, 9308, 9310, 9311, 9312, 9316, 9320, 9328 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 93 - Perfection and Priority
Section 9301 - Law governing perfection and priority of security interests
Section 9302 - Law governing perfection and priority of agricultural liens
Section 9304 - Law governing perfection and priority of security interests in deposit accounts
Section 9305 - Law governing perfection and priority of security interests in investment property
Section 9307 - Location of debtor
Section 9308 - When security interest or agricultural lien is perfected; continuity of perfection
Section 9309 - Security interest perfected upon attachment
Section 9314 - Perfection by control
Section 9315 - Secured party's rights on disposition of collateral and in proceeds
Section 9316 - Effect of change in governing law
Section 9319 - Rights and title of consignee with respect to creditors and purchasers
Section 9321 - Licensee of general intangible and lessee of goods in ordinary course of business
Section 9323 - Future advances
Section 9324 - Priority of purchase-money security interests
Section 9325 - Priority of security interests in transferred collateral
Section 9326 - Priority of security interests created by new debtor
Section 9327 - Priority of security interests in deposit account
Section 9328 - Priority of security interests in investment property
Section 9329 - Priority of security interests in letter-of-credit right
Section 9330 - Priority of purchaser of chattel paper or instrument
Section 9332 - Transfer of money; transfer of funds from deposit account
Section 9333 - Priority of certain liens arising by operation of law
Section 9334 - Priority of security interests in fixtures and crops
Section 9336 - Commingled goods
Section 9337 - Priority of security interests in goods covered by certificate of title
Section 9339 - Priority subject to subordination
Section 9340 - Effectiveness of right of recoupment or set-off against deposit account
Section 9341 - Bank's rights and duties with respect to deposit account
Section 9342 - Bank's right to refuse to enter into or disclose existence of control agreement