| | | long-term perfection. The rule is likely to be particularly | | useful in transactions involving large number of notes that a | | debtor uses as collateral but continues to collect from the | | makers. A security interest perfected by filing is subject to | | defeat by certain subsequent purchasers (including secured | | parties). Under Section 9-330(d) [Maine cite section 9-1330, | | subsection (4)], purchasers for value who take possession of an | | instrument without knowledge that the purchase violates the | | rights of the secured party generally would achieve priority over | | a security interest in the instrument perfected by filing. In | | addition, Section 9-331 [Maine cite section 9-1331] provides that | | filing a financing statement does not constitute notice that | | would preclude a subsequent purchaser from becoming a holder in | | due course and taking free of all claims under Section 3-306. |
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| | | 3. Chattel Paper; Negotiable Documents. Subsection (a) | | [Maine cite subsection (1)] further provides that filing is | | available as a method of perfection for security interests in | | chattel paper and negotiable documents. Tangible chattel paper | | is sometimes delivered to the assignee, and sometimes left in the | | hands of the assignor for collection. Subsection (a) [Maine cite | | subsection (1)] allows the assignee to perfect its security | | interest by filing in the latter case. Alternatively, the | | assignee may perfect by taking possession. See Section 9-313(a) | | [Maine cite section 9-1313, subsection (1)] . An assignee of | | electronic chattel paper may perfect by taking control. See | | Sections 9-314(a), 9-105 [Maine cite section 9-1314, subsection | | (1), section 9-1105]. The security interest of an assignee who | | takes possession or control may qualify for priority over a | | competing security interest perfected by filing. See Section 9- | | 330 [Maine cite section 9-1330]. |
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| | | Negotiable documents may be, and usually are, delivered to the | | secured party. The secured party's taking possession will | | suffice as a perfection step. See Section 9-313(a) [Maine cite | | section 9-1313, subsection (1)]. However, as is the case with | | chattel paper, a security interest in a negotiable document may | | be perfected by filing. |
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| | | 4. Investment Property. A security interest in investment | | property, including certificated securities, uncertificated | | securities, security entitlements, and securities accounts, may | | be perfected by filing. However, security interests created by | | brokers, securities intermediaries, or commodity intermediaries | | are automatically perfected; filing is of no effect. See Section | | 9-309(10), (11) [Maine cite section 9-1309, subsections (10) and | | (11)]. A security interest in all kinds of investment property | | also may be perfected by control, see Sections 9-314, 9-106 | | [Maine cite section 9-1314, section 9-1106], and a security | | interest in a certificated security also may be perfected by the |
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