Perfection
Perfection of security interests means different things to lawyers in different jurisdictions.
- in English law, perfection has no defined statutory or judicial meaning, but academics have pressed the view that it refers to the attachment of the security interest to the underlying asset. Others have argued cogently that attachment is a separate legal concept, and that perfection refers to any steps required to ensure that the security interest is enforceable against third parties.
- in American law, perfection is generally taken to refer to any steps required to ensure that the security interest remains enforceable on the debtor's bankruptcy.
With the Americanization of the world's legal profession, the second definition is becoming more frequently used commercially, and arguably is to be preferred, as the traditional English legal usage has little purpose except in relation to the comparatively rare true legal mortgage (very few other security interests require additional steps to attach to the asset, but security interests frequently require some form of registration to be enforceable on the chargor's insolvency).
Read more about this topic: Security Interest
Famous quotes containing the word perfection:
“Culture, then, is a study of perfection, and perfection which insists on becoming something rather than in having something, in an inward condition of the mind and spirit, not in an outward set of circumstances.”
—Matthew Arnold (1822–1888)
“To higher or lower ends, they [the majority of mankind] move too often with something of a sad countenance, with hurried and ignoble gait, becoming, unconsciously, something like thorns, in their anxiety to bear grapes; it being possible for people, in the pursuit of even great ends, to become themselves thin and impoverished in spirit and temper, thus diminishing the sum of perfection in the world, at its very sources.”
—Walter Pater (1839–1894)
“Orsino. For women are as roses, whose fair flower
Being once displayed, doth fall that very hour.
Viola. And so they are. Alas, that they are so:
To die even when they to perfection grow.”
—William Shakespeare (1564–1616)