When can a security interest be perfected by filing?

A security interest can be perfected by filing for most types of collateral, but there are specific exceptions outlined in the Uniform Commercial Code (UCC), which governs secured transactions in Georgia and many other states. When it comes to perfection by filing, it applies broadly, but certain types of collateral cannot be perfected this way.

The correct answer indicates that a security interest can be perfected by filing for all collateral types except deposit accounts and money. Deposit accounts have different rules for perfection, mainly because they involve specific banking regulations and may require control rather than just a filing. Similarly, money is not subject to traditional secured transactions rules because it represents a payment medium rather than a tangible asset you can secure against.

This understanding is crucial for practitioners in secured transactions, as it helps them navigate the perfection of security interests correctly. Knowing that most collateral can be perfected by filing, while depositing accounts and money are exceptions, ensures that stakeholders adhere to the proper legal requirements when establishing or enforcing security interests.