LD 2245
pg. 94
Page 93 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 95 of 493
Download Bill Text
LR 1087
Item 1

 
for an authenticated security agreement. However, once the
security interest has become enforceable and has attached, it is
not impaired by the fact that the secured party's possession is
maintained without the agreement of a subsequent debtor (e.g., a
transferee). Possession as contemplated by Section 9-313 [Maine
cite section 9-1313] is possession for purposes of subsection
(b)(3)(B) [Maine cite subsection (2), paragraph (c), subparagraph
(ii)], even though it may not constitute possession "pursuant to
the debtor's agreement" and consequently might not serve as a
substitute for an authenticated security agreement under
subsection (b)(3)(A) [Maine cite subsection (2), paragraph (c),
subparagraph (i)]. Subsection (b)(3)(C) [Maine cite subsection
(2), paragraph (c), subparagraph (iii)] provides that delivery of
a certificated security to the secured party under Section 8-301
[Maine cite section 8-1302] pursuant to the debtor's security
agreement is sufficient as a substitute for an authenticated
security agreement. Similarly, under subsection (b)(3)(D) [Maine
cite subsection (2), paragraph (c), subparagraph (iv)], control
of investment property, a deposit account, electronic chattel
paper, or a letter-of-credit right satisfies the evidentiary test
if control is pursuant to the debtor's security agreement.

 
5. Collateral Covered by Other Statute or Treaty. One
evidentiary purpose of the formal requisites stated in subsection
(b) [Maine cite subsection (2)] is to minimize the possibility of
future disputes as to the terms of a security agreement (e.g., as
to the property that stands as collateral for the obligation
secured). One should distinguish the evidentiary functions of
the formal requisites of attachment and enforceability (such as
the requirement that a security agreement contain a description
of the collateral) from the more limited goals of "notice filing"
for financing statements under Part 5, explained in Section 9-502
[Maine cite section 9-1502], Comment 2. When perfection is
achieved by compliance with the requirements of a statute or
treaty described in Section 9-311(a) [Maine cite section 9-1311,
subsection (1)], such as a federal recording act or a
certificate-of-title statute, the manner of describing the
collateral in a registry imposed by the statute or treaty may or
may not be adequate for purposes of this section and Section 9-
108 [Maine cite section 9-1108]. However, the description
contained in the security agreement, not the description in a
public registry or on a certificate of title, controls for
purposes of this section.

 
6. Debtor's Rights; Debtor's Power to Transfer Rights.
Subsection (b)(2) [Maine cite subsection (2), paragraph (b)]
conditions attachment on the debtor's having "rights in the
collateral or the power to transfer rights in the collateral to a
secured party." A debtor's limited rights in collateral, short
of full ownership, are sufficient for a security interest to


Page 93 of 493 Top of Page Page 95 of 493