Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

perfection

Read a random definition: immediate cause

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

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
LSD+ is ad-free, with DMs, discounts, case briefs & more.