(1) A security interest in chattel paper or negotiable documents may be perfected by filing. A security interest in the rights to proceeds of a written letter of credit can be perfected only by the secured party's taking possession of the letter of credit. A security interest in money, certificated securities or instruments (other than instruments which constitute part of chattel paper) can be perfected only by the secured party's taking possession, except as provided in subsections (4) and (5) of this section and subsections (2) and (3) of section 28:9-306 on proceeds.
(2) During the period that goods are in the possession of the issuer of a negotiable document therefor, a security interest in the goods is perfected by perfecting a security interest in the document, and any security interest in the goods otherwise perfected during such period is subject thereto.
(3) A security interest in goods in the possession of a bailee other than one who has issued a negotiable document therefor is perfected by issuance of a document in the name of the secured party or by the bailee's receipt of notification of the secured party's interest or by filing as to the goods.
(4) A security interest in instruments, certificated securities, or negotiable documents is perfected without filing or the taking of possession for a period of twenty-one days from the time it attaches to the extent that it arises for new value given under a written security agreement.
(5) A security interest remains perfected for a period of twenty-one days without filing where a secured party having a perfected security interest in an instrument, a certificated security, a negotiable document or goods in possession of a bailee other than one who has issued a negotiable document therefor
(a) makes available to the debtor the goods or documents representing the goods for the purpose of ultimate sale or exchange or for the purpose of loading, unloading, storing, shipping, transshipping, manufacturing, processing or otherwise dealing with them in a manner preliminary to their sale or exchange, but priority between conflicting security interests in the goods is subject to section 28:9-312(3); or
(b) delivers the instrument or certificated security to the debtor for the purpose of ultimate sale or exchange or of presentation, collection, renewal or registration of transfer.
(6) After the twenty-one day period in subsections (4) and (5) perfection depends upon compliance with applicable provisions of this article.
CREDIT(S)
(Dec. 30, 1963, 77 Stat. 755, Pub. L. 88-243, § 1; Mar. 16, 1982, D.C. Law 4-85, § 21, 29 DCR 309; Mar. 16, 1993, D.C. Law 9-196, § 5(e), 39 DCR 9165; Apr. 9, 1997, D.C. Law 11-238, § 3(h), 44 DCR 923; Apr. 9, 1997, D.C. Law 11-240, § 3(n), 44 DCR 1087.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 28:9-304.
1973 Ed., § 28:9-304.
Legislative History of Laws
For legislative history of D.C. Law 4-85, see Historical and Statutory Notes following § 28:9-102.
For legislative history of D.C. Law 9-196, see Historical and Statutory Notes following § 28:9-103.
Law 11-238, the “Uniform Commercial Code--Letters of Credit Act of 1996,” was introduced in Council and assigned Bill No. 11-754, which was referred to the Committee on Consumer and Regulatory Affairs. The Bill was adopted on first and second readings on November 7, 1996, and December 3, 1996, respectively. Signed by the Mayor on December 24, 1996, it was assigned Act No. 11-498 and transmitted to both Houses of Congress for its review. D.C. Law 11-238 became effective on April 9, 1997.
For legislative history of D.C. Law 11-240, see Historical and Statutory Notes following § 28:9-301.
For Law 13-201, see notes following § 28:9-101.