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LSDefine

Simple English definitions for legal terms

perfection

Read a random definition: bench trial

A quick definition of perfection:

Term: Perfection

Definition: When someone lends money to another person and takes something valuable as collateral, they want to make sure that if the borrower doesn't pay them back, they can take the collateral and sell it to get their money back. To make sure everyone knows that they have a right to the collateral, the lender has to do something called "perfection." This means they have to either file some paperwork or physically take possession of the collateral to show everyone that it belongs to them.

A more thorough explanation:

Perfection

Perfection is the process by which a lender or secured party notifies the public of their security interest in a particular asset or property. This is done by either filing a notice with the appropriate government agency or taking physical possession or control of the collateral.

For example, if a person takes out a loan to buy a car, the lender will want to perfect their security interest in the car. This means that they will file a notice with the Department of Motor Vehicles (DMV) indicating that they have a lien on the car. If the borrower defaults on the loan, the lender can repossess the car and sell it to recover their money.

Another example would be if a business takes out a loan and uses their inventory as collateral. The lender may require the business to physically deliver the inventory to a warehouse controlled by the lender. This gives the lender control over the inventory and ensures that they can recover their money if the business defaults on the loan.

Perfection is an important step in securing a loan or other financial transaction. By notifying the public of their security interest, the lender can protect their investment and ensure that they can recover their money if the borrower defaults. Filing a notice with a government agency or taking physical possession of collateral are both effective ways to perfect a security interest.

perfected | perform

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General

General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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