What is perfection of a security interest?
For the security interest to be perfected, a financing statement must be filed. A financing statement lasts for 5 years but can be re-filed indefinitely every five years. A security interest can be ‘perfected’ without having to file a financing statement if the sale is made to a consumer. Perfection of a security interest can be achieved by any one of the following options:
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What is a security interest?
A security interest is when the creditor has legal claim or a lien on collateral that has been pledged by the debtor to obtain a loan. This provides tangible value that the creditor can seize and sell to pay off the loan if the debtor defaults. In order for a security interest to be legally...
What is a security interest?
A security interest is when the creditor has legal claim or a lien on collateral that has been pledged by the debtor to obtain a loan. This provides tangible value that the creditor can seize and sell to pay off the loan if the debtor defaults. In order for a security interest to be legally...
