Missouri Revised Statutes
Chapter 400
Uniform Commercial Code
←400.09-312
Section 400.9-313.1
400.09-314→
August 28, 2015
When possession by or delivery to secured party perfects security interest without filing.
400.9-313. (a) Except as otherwise provided in subsection (b), a
secured party may perfect a security interest in negotiable documents, goods,
instruments, money, or tangible chattel paper by taking possession of the
collateral. A secured party may perfect a security interest in certificated
securities by taking delivery of the certificated securities under section
400.8-301.
(b) With respect to goods covered by a certificate of title issued by
this state, a secured party may perfect a security interest in the goods by
taking possession of the goods only in the circumstances described in section
400.9-316(d).
(c) With respect to collateral other than certificated securities and
goods covered by a document, a secured party takes possession of collateral
in the possession of a person other than the debtor, the secured party, or a
lessee of the collateral from the debtor in the ordinary course of the
debtor's business, when:
(1) The person in possession authenticates a record acknowledging that
it holds possession of the collateral for the secured party's benefit; or
(2) The person takes possession of the collateral after having
authenticated a record acknowledging that it will hold possession of
collateral for the secured party's benefit.
(d) If perfection of a security interest depends upon possession of the
collateral by a secured party, perfection occurs no earlier than the time the
secured party takes possession and continues only while the secured party
retains possession.
(e) A security interest in a certificated security in registered form is
perfected by delivery when delivery of the certificated security occurs under
section 400.8-301 and remains perfected by delivery until the debtor obtains
possession of the security certificate.
(f) A person in possession of collateral is not required to acknowledge
that it holds possession for a secured party's benefit.
(g) If a person acknowledges that it holds possession for the secured
party's benefit:
(1) The acknowledgment is effective under subsection (c) or section
400.8-301(a), even if the acknowledgment violates the rights of a debtor; and
(2) Unless the person otherwise agrees or law other than this article
otherwise provides, the person does not owe any duty to the secured party and
is not required to confirm the acknowledgment to another person.
(h) A secured party having possession of collateral does not relinquish
possession by delivering the collateral to a person other than the debtor or
a lessee of the collateral from the debtor in the ordinary course of the
debtor's business if the person was instructed before the delivery or is
instructed contemporaneously with the delivery:
(1) To hold possession of the collateral for the secured party's
benefit; or
(2) To redeliver the collateral to the secured party.
(i) A secured party does not relinquish possession, even if a delivery
under subsection (h) violates the rights of a debtor. A person to which
collateral is delivered under subsection (h) does not owe any duty to the
secured party and is not required to confirm the delivery to another person
unless the person otherwise agrees or law other than this article otherwise
provides.
(L. 1963 p. 503 § 9-313, A.L. 1988 S.B. 583, A.L. 1998 H.B. 1066,
A.L. 2001 S.B. 288)
Effective 7-01-01
1998
1998
400.9.313. (1) In this section and in the provisions of part 4 of
this article referring to fixture filing, unless the context otherwise
requires
(a) goods are "fixtures" when they become so related to particular
real estate that an interest in them arises under real estate law;
(b) a "fixture filing" is the filing in the office where a mortgage
on the real estate would be filed or recorded of a financing statement
covering goods which are or are to become fixtures and conforming to the
requirements of subsection (5) of section 400.9-402;
(c) a mortgage is a "construction mortgage" to the extent that it
secures an obligation incurred for the construction of an improvement on
land including the acquisition cost of the land, if the recorded writing so
indicates.
(2) A security interest under this article may be created in goods
which are fixtures or may continue in goods which become fixtures, but no
security interest exists under this article in ordinary building materials
incorporated into an improvement on land.
(3) This article does not prevent creation of an encumbrance upon
fixtures pursuant to real estate law.
(4) A perfected security interest in fixtures has priority over the
conflicting interest of an encumbrancer or owner of the real estate where
(a) the security interest is a purchase money security interest, the
interest of the encumbrancer or owner arises before the goods become
fixtures, the security interest is perfected by a fixture filing before the
goods become fixtures or within ten days thereafter, and the debtor has an
interest of record in the real estate or is in possession of the real
estate; or
(b) the security interest is perfected by a fixture filing before the
interest of the encumbrancer or owner is of record, the security interest
has priority over any conflicting interest of a predecessor in title of the
encumbrancer or owner, and the debtor has an interest of record in the real
estate or is in possession of the real estate; or
(c) the fixtures are readily removable factory or office machines or
readily removable replacements of domestic appliances which are consumer
goods, and before the goods become fixtures the security interest is
perfected by any method permitted by this article; or
(d) the conflicting interest is a lien on the real estate obtained by
legal or equitable proceedings after the security interest was perfected by
any method permitted by this article.
(5) A security interest in a manufactured home as defined in section
700.010, RSMo, which has been perfected pursuant to sections 700.350 to
700.390, RSMo, has priority over the conflicting interest of an
encumbrancer or owner of the real estate if the security agreement was made
before the manufactured home was placed upon the real estate. This
subdivision shall apply only to security interests in manufactured homes
which are placed on real property after August 28, 1998. This subdivision
shall not prevent the use of fixture filings for manufactured homes.
(6) A security interest in fixtures, whether or not perfected, has
priority over the conflicting interest of an encumbrancer or owner of the
real estate where
(a) the encumbrancer or owner has consented in writing to the
security interest or has disclaimed an interest in the goods as fixtures;
or
(b) the debtor has a right to remove the goods as against the
encumbrancer or owner. If the debtor's right terminates, the priority of
the security interest continues for a reasonable time.
(7) Notwithstanding paragraph (a) of subsection (4) but otherwise
subject to subsections (4), (5) and (6), a security interest in fixtures is
subordinate to a construction mortgage recorded before the goods become
fixtures if the goods become fixtures before the completion of the
construction. To the extent that it is given to refinance a construction
mortgage, a mortgage has this priority to the same extent as the
construction mortgage.
(8) In cases not within the preceding subsections, a security
interest in fixtures is subordinate to the conflicting interest of an
encumbrancer or owner of the related real estate who is not the debtor.
(9) When the secured party has priority over all owners and
encumbrancers of the real estate, he may, on default, subject to the
provisions of part 5, remove his collateral from the real estate, but he
must reimburse any encumbrancer or owner of the real estate who is not the
debtor and who has not otherwise agreed for the cost of repair of any
physical injury, but not for any diminution in value of the real estate
caused by the absence of the goods removed or by any necessity of replacing
them. A person entitled to reimbursement may refuse permission to remove
until the secured party gives adequate security for the performance of this
obligation.
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