New Jersey § 12a:9-313

§ 12a:9-313.

(a) Perfection by possession or delivery. Except as otherwise provided in subsection (b), 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 12A:8-301. (b) Goods covered by certificate of title. 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 12A:9-316 (d). (c) Collateral in possession of person other than debtor. 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) Time of perfection by possession; continuation of perfection. 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) Time of perfection by delivery; continuation of perfection. A security interest in a certificated security in registered form is perfected by

delivery when delivery of the certificated security occurs under 12A:8-301 and remains

perfected by delivery until the debtor obtains possession of the security certificate. (f) Acknowledgment not required. A person in possession of collateral is not required to acknowledge that it holds

possession for a secured party's benefit. (g) Effectiveness of acknowledgment; no duties or confirmation. If a person acknowledges that it holds possession for the secured party's benefit: (1) the acknowledgment is effective under subsection (c) or 12A:8-301 (a), 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) Secured party's delivery to person other than debtor. 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) Effect of delivery under subsection (h); no duties or confirmation. A secured party does not relinquish possession, even if a delivery under subsection

(h) violates the rights of a debtor. A person to which collateral is delivered under subsection (h) 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.