Perfection by Control

1. Law
2. Tennessee Code
3. Commercial Instruments and Transactions
4. Secured Transactions
5. Perfection and Priority
6. Perfection by Control

1. Perfection by control.  A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper, or electronic documents may be perfected by control of the collateral under § 47-7-106, § 47-9-104, § 47-9-105, § 47-9-106, or § 47-9-107.
2. Specified collateral: time of perfection by control; continuation of perfection.   A security interest in deposit accounts, electronic chattel paper, letter-of-credit rights, or electronic documents is perfected by control under § 47-7-106, § 47-9-104, § 47-9-105, or § 47-9-107 when the secured party obtains control and remains perfected by control only while the secured party retains control.
3. Investment property: time of perfection by control; continuation of perfection.  A security interest in investment property is perfected by control under § 47-9-106 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 (1) of the following occurs:
      1. if the collateral is a certificated security, the debtor has or acquires possession of the security certificate;
      2. if the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or
      3. if the collateral is a security entitlement, the debtor is or becomes the entitlement holder.

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