Idaho State Statutes - Idaho Attorney Directory

WHEN POSSESSION BY OR DELIVERY TO SECURED PARTY PERFECTS
SECURITY INTEREST WITHOUT FILING. (a) Except as otherwise provided in
subsection (b) of this section, a secured party may perfect a security
interest in tangible 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 28-8-301.
(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
28-9-316(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 28-8-301, 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) of this section
or section 28-8-301(1), even if the acknowledgment violates the rights of
a debtor; and
(2) Unless the person otherwise agrees, or law other than this chapter
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) of this section violates the rights of a debtor. A person
to which collateral is delivered under subsection (h) of this section 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
chapter otherwise provides.

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