This practice note discusses the requirements for the attachment and perfection of consensual security interests in personal property under Article 9 of the Uniform Commercial Code (UCC). A security interest is said to attach to collateral when it becomes a right that is enforceable against the debtor’s property. Perfection places third parties, including the debtor’s other creditors, on notice of the existence of a security interest.

There are four basic methods for perfecting a security interest under the UCC. First, and most common, is the filing of a properly completed financing statement with the appropriate UCC filing office. Some collateral requires a filing with a governmental agency designated for the filing of such perfection devices (e.g., the patent office, the FAA in Tulsa, OK). Second, the collateral may be held in the possession of the secured party. Third, perfection by obtaining control over the collateral. Fourth, in a few cases, the attachment of the security interest automatically perfects the security interest.

Originally published on October 19, 2022, as a LexisNexis Practical Guidance® Practice Note.