North Carolina General Statutes 25-9-314. Perfection by control
(a) 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 N.C. Gen. Stat. § 25-7-106, 25-9-104, 25-9-105, 25-9-106, or 25-9-107.
(b) 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 N.C. Gen. Stat. § 25-7-106, 25-9-104, 25-9-105, or 25-9-107 when the secured party obtains control and remains perfected by control only while the secured party retains control.
(c) Investment property: time of perfection by control; continuation of perfection. – A security interest in investment property is perfected by control under N.C. Gen. Stat. § 25-9-106 from the time the secured party obtains control and remains perfected by control until:
(1) The secured party does not have control; and
Terms Used In North Carolina General Statutes 25-9-314
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
(2) One of the following occurs:
a. If the collateral is a certificated security, the debtor has or acquires possession of the security certificate;
b. If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or
c. If the collateral is a security entitlement, the debtor is or becomes the entitlement holder. (1997-181, s. 5; 2000-169, s. 1; 2006-112, s. 52.)