Section 45.29.313. When possession by or delivery to secured party perfects security interest without filing.

   (a) Except as otherwise provided in (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 AS 45.08.301.
   (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 AS 45.29.316(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 the person
        (1) in possession authenticates a record acknowledging that the person holds possession of the collateral for the secured party's benefit; or
        (2) 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 AS 45.08.301 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 (c) of this section or AS 45.08.301(a), 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 a 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 to
        (1) hold possession of the collateral for the secured party's benefit; or
        (2) redeliver the collateral to the secured party.
   (i) A secured party does not relinquish possession, even if a delivery under (h) of this section violates the rights of a debtor. A person to whom collateral is delivered under (h) of this section does not owe a 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.

Authorities

45.29.203;45.29.310;45.29.311;45.29.312;45.29.320;45.29.328

Notes

References

AS 45.29.203 Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites.
AS 45.29.310 When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply.
AS 45.29.311 Perfection of security interests in property subject to certain statutes, regulations, and treaties.
AS 45.29.312 Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; perfection by permissive filing; temporary perfection without filing or transfer of possession.
AS 45.29.320 Buyer of goods.
AS 45.29.328 Priority of security interests in investment property.

History

(Sec. 1 ch 113 SLA 2000; am Sec. 59 ch 41 SLA 2009; am Sec. 104 ch 44 SLA 2009)