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 man who, from the beginning of his life, has been bathed at length in the soft atmosphere of a woman, in the smell of her hands, of her bosom, of her knees, of her hair, of her supple and floating clothes, ... has contracted from this contact a tender skin and a distinct accent, a kind of androgyny without which the harshest and most masculine genius remains, as far as perfection in art is concerned, an incomplete being.”
—Charles Baudelaire (1821–1867)
“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)
“Things out of perfection sail
And all their swelling canvas wear....”
—William Butler Yeats (1865–1939)