The fifth perfection mechanism is dealt with in section 9-309 of the UCC: there are several circumstances where a safety interest is perfected on the simple link. The most important thing here is automatic perfection by simple fixing. interest in the security of buying consumer goods. If a consumer product seller takes a PMSI in the product sold, the perfection of the safety interest is automatic. But the seller can file a financial file and threatens if he does not deposit and the debtor sells the goods. According to Section 9-320 (b), a purchaser of consumer goods is exempt from a security interest, even if it is enhanced when buying, paying value and using the property for personal, family or domestic purposes – unless the insured party has previously filed a financing statement for the goods. The UCC provides that certain types of warranties are automatically refined, but only for a period of time: “A security interest in certified securities or tradable documents or instruments is perfected without deposit or possession for twenty days from the date on which it is attached, to the extent that it is born for a new value indicated under a certified security agreement.” Unique Code of Trade, Section 9-312 (e). A similar temporary perfection includes tradable documents or goods in possession of a bailee and when a security certificate or security instrument is sent to the debtor for sale, exchange, presentation, forfeiture, execution, renewal or registration. Unique code of trade, sections 9-312 (f) and g). After the 20-day period, perfection should go through one of the other methods mentioned here.
Creditors want assurance that they will be reimbursed by the debtor. Paying an oral promise is not safe at all, and since it is oral, it is difficult to prove. A loan signedA loan for which no guarantee is mortgaged. is just a written promise from the debtor to repay, but the creditor who holds only a voucher with a signed credit – although he can sue a defaulting debtor – receives nothing if the debtor is insolvent. Nor is that a guarantee at all. The effective guarantee for the creditor comes in two forms: in agreement with the debtor or in accordance with the law without agreement. The form of funding may vary from state to state, but see Chart 19.3 “UCC-1 Funding Statement” for a typical funding plan. Minor errors or omissions on the form do not render it inoperative, but the debtor`s signature is required, unless the creditor is authorized by the debtor to file without a signature, making it easier to deposit without paper. Single Code of Trade, Section 9-506; Unique Code of Trade, Section 9-502, Comment 3.