Perfected Security Interest
/ˈpɜːrfɪktɪd sɪˈkjʊərəti ˈɪntrɪst/
Definitions
- (n.) A security interest in collateral that is enforceable against third parties by compliance with statutory requirements, such as filing a financing statement or possession of the collateral.
The lender held a perfected security interest in the borrower's inventory, ensuring priority over other creditors.
Forms
- perfected security interests
Related terms
See also
Commentary
Perfecting a security interest is crucial to establish priority against other creditors; drafters should specify the method of perfection to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.