2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 93 - Perfection and Priority
Section 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.