Confused on PPSA, registering and perfecting?
Business law. My notes use register and perfect almost interchangeably and then a practice question clearly treated them as different and I got it wrong.
What is the relationship between the two.
3 replies
Standout answer
Yeah, they’re connected, but not quite the same thing.
Registration is basically the act of filing the financing statement in the PPSA registry.
*Perfection *is the legal status of the security interest once you’ve taken the required steps to protect it against third parties.
Registration is pretty much the most common way to perfect. But you can also perfect in other ways for certain collateral, like possession or control.
So perhaps think of as registration being the step whereas perfection is the actual result.
Super helpful!!! Thank you my guy
The answer you got above pretty much covers it, i would just add that the purchase money security interest is the exception to know cold (in relantion to the special priority status if you take the right steps inside the window.)
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