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:
“The trade of advertising is now so near perfection that it is not easy to propose any improvement. But as every art ought to be exercised in due subordination to the public good, I cannot but propose it as a moral question to these masters of the public ear, whether they do not sometimes play too wantonly with our passions.”
—Samuel Johnson (1709–1784)
“I would with such perfection govern, sir,
T’excel the golden age.”
—William Shakespeare (1564–1616)
“You have waited, you always wait, you dumb, beautiful ministers,
We receive you with free sense at last, and are insatiate
hence-forward,
Not you any more shall be able to foil us, or withhold yourselves
from us,
We use you, and do not cast you aside—we plant you permanently within us,
We fathom you not—we love you—there is perfection in you also,
You furnish your parts, toward eternity,
Great or small, you furnish your parts toward the soul.”
—Walt Whitman (1819–1892)