perfect

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perfect

(pronounced with the emphasis on the second syllable, not the first) To complete all steps necessary to establish a security interest in property that will take priority over later lenders. As between a lender and a borrower, a mortgage is effective and enforceable even if it is never recorded in the real estate records. If a third party, such as another lender, loans money to the debtor and records its own mortgage, then the second lender will have first rights in the property. The recordation of the mortgage, or of a UCC-1 for personal property, is called perfecting a security interest.Note:The UCC-1 is named for the Uniform Commercial Code form used to record notice of a security interest in personal property.

References in periodicals archive ?
Another change states that a perfected cooperative security interest dates from the time an advance is made.
These new definitions and rules take on further significance to all current secured parties who perfected their liens under the old Article 9 in cooperative organizations.
Thereafter, it can remain perfected only if the applicable requirements for perfection under the revised Article 9 (including filing the cooperative addendum or new identifying information) are satisfied before the five years expire.