temporary perfection

temporary perfection

The continuous perfection of a security interest for a limited period.

? For example, a security interest in proceeds from the original collateral is perfected for ten days after the debtor receives the proceeds; the interest will become unperfected after this ten-day period unless certain statutory requirements are met. On most instruments, a secured party who advances new value under a written security agreement obtains a 21-day perfection period, even if the secured party does not file a financing statement and the collateral remains with the debtor. UCC ¡ì 9-312. [Cases: Secured Transactions 135, 168. C.J.S. Secured Transactions ¡ì¡ì 52, 119¨C124.]


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Carl, Chinese legal translator, specializes in translating legal documents pertaining to complex business disputes.