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:
“Things out of perfection sail
And all their swelling canvas wear....”
—William Butler Yeats (1865–1939)
“What journeyings on foot and on horseback through the wilderness, to preach the gospel to these minks and muskrats! who first, no doubt, listened with their red ears out of a natural hospitality and courtesy, and afterward from curiosity or even interest, till at length there “were praying Indians,” and, as the General Court wrote to Cromwell, the “work is brought to this perfection that some of the Indians themselves can pray and prophesy in a comfortable manner.””
—Henry David Thoreau (1817–1862)
“The job for us is to develop a way to teach children without demanding instant perfection or without giving in to every whim.”
—Jeannette W. Galambos (20th century)