9313 - When possession by or delivery to secured party perfects security interest without filing.

     § 9313.  When possession by or delivery to secured party                perfects security interest without filing.        (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     continued perfection of security interest following 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)        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.