Question

Under the UCC Secured Transactions Article, which of the following actions will best perfect a security interest in a negotiable instrument against any other party? a) Filling a security agreement b) Taking possession of the intrument c) Perfecting by attchment d) Obtaining a duly executed fiancing statement

Answer 1

Answer: Option (B)

Explanation:

This is because under this scenario the holder in due time of the negotiable instrument tends to have the priority over the early perfected known security interest, also the best known way in order to perfect the security interest under an negotiable instrument is done by taking possession of the instrument, since doing so prevents the later individual from adapting to the holder in due time.