Legislation

Section 9--314. Perfection by Control.

(a) Perfection by control. A security interest in controllable
accounts, controllable electronic records, controllable payment
intangibles, deposit accounts, electronic documents, electronic money,
investment property, or letter-of-credit rights, may be perfected by
control of the collateral under Section 7--106, 9--104, 9--105A, 9--106,
9--107 or 9--107A.

(b) Specified collateral: time of perfection by control; continuation
of perfection. A security interest in controllable accounts,
controllable electronic records, controllable payment intangibles,
deposit accounts, electronic documents, electronic money, or
letter-of-credit rights is perfected by control under Section 7--106,
9--104, 9--105A, 9--107, or 9--107A not earlier than the time when the
secured party obtains control and remains perfected by control only
while the secured party retains control.
(c) Investment property: time of perfection by control; continuation of
perfection. A security interest in investment property is perfected by
control under Section 9--106 not earlier than the time the secured party
obtains control and remains perfected by control until:

(1) the secured party does not have control; and

(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; or

(C) if the collateral is a security entitlement, the debtor

is or becomes the entitlement holder.

(d) Cooperative interests. Subsections (a) through (c) do not apply to
cooperative interests.