PARRIS N. GLENDENING, Governor

Ch. 92

(1)     A security interest in chattel paper or negotiable documents may be perfected
by filing. A security interest in money or instruments (other than [ certificated securities
or] instruments which constitute part of chattel paper) can be perfected only by the
secured party's taking possession, except as provided in subsections (4) and (5) of this
section and subsections (2) and (3) of § 9-306 on proceeds.

(2)     During the period that goods are in the possession of the issuer of a
negotiable document therefor, a security interest in the goods is perfected by perfecting a
security interest in the document, and any security interest in the goods otherwise
perfected during such period is subject thereto.

(3)     A security interest in goods in the possession of a bailee other than one who
has issued a negotiable document therefor is perfected by issuance of a document in the
name of the secured party or by the bailee's receipt of notification of the secured party's
interest or by filing as to the goods.

(4)     A security interest in [instruments (other than certificated securities)]
INSTRUMENTS, CERTIFICATED SECURITIES, or negotiable documents is perfected
without filing or the taking of possession for a period of 21 days from the time it attaches
to the extent that it arises for new value given under a written security agreement.

(5)     A security interest remains perfected for a period of 21 days without filing
where a secured party having a perfected security interest in an instrument [ (other than
a certificated security)], A CERTIFICATED SECURITY, a negotiable [document]
DOCUMENT, or goods in possession of a bailee other than one who has issued a
negotiable document therefor:

(a)     Makes available to the debtor the goods or documents representing the
goods for the purpose of ultimate sale or exchange or for the purpose of loading,
unloading, storing, shipping, transshipping, manufacturing, processing or otherwise
dealing with them in a manner preliminary to their sale or exchange, but priority between
conflicting security interests in the goods is subject to subsection (3) of § 9-312; or

(b)     Delivers the instrument OR CERTIFICATED SECURITY to the debtor for
the purpose of ultimate sale or exchange or of presentation, collection, renewal or
registration of transfer.

(6)     After the [twenty-one day] 21-DAY period in subsections (4) and (5)
perfection depends upon compliance with applicable provisions of this title.

9-305.

A security interest in letters of credit and advices of credit (subsection (2)(a) of §
5-116), goods, instruments [ (other than certificated securities)], money, negotiable
documents or chattel paper may be perfected by the secured party's taking possession of
the collateral. If such collateral other than goods covered by a negotiable document is
held by a bailee, the secured party is deemed to have possession from the time the bailee
receives notification of the secured party's interest. A security interest is perfected by
possession from the time possession is taken without relation back and continues only so

- 1335 -