2006 Kansas Code - 84-9-314

      84-9-314.   Perfection by control. (a) Perfection by control. A security interest in investment property, deposit accounts, letter-of-credit rights, or electronic chattel paper may be perfected by control of the collateral under K.S.A. 2005 Supp. 84-9-104, 84-9-105, 84-9-106, or 84-9-107 and amendments thereto.

      (b)   Specified collateral: time of perfection by control; continuation of perfection. A security interest in deposit accounts, electronic chattel paper, or letter-of-credit rights is perfected by control under K.S.A. 2005 Supp. 84-9-104, 84-9-105 or 84-9-107 and amendments thereto 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 K.S.A. 2005 Supp. 84-9-106 and amendments thereto from 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.

      History:   L. 2000, ch. 142, § 34; July 1, 2001.