NY UCC § 9-313 (2021)
2021 New York Laws UCC - Uniform Commercial Code Article 9 - Secured Transactions Part 3 - Perfection and Priority Sub Part 2 - Perfection 9-313 - When Possession by or Delivery to Secured Party Perfects Security Interest Without Filing.

Section 9--313. When Possession by or Delivery to Secured Party Perfects                   Security Interest Without Filing.  (a) Perfection by possession or delivery. Except as otherwise provided in  subsection  (b),  a secured party may perfect a security interest in tangible negotiable documents, goods, instruments,  money,  or  tangible chattel  paper  by  taking possession of the collateral. A secured party may perfect a security interest in  certificated  securities  by  taking delivery of the certificated securities under Section 8--301.  (b) Goods  covered  by  certificate  of  title.  With respect to goods covered by a certificate of title issued by this state, a secured  party may perfect a security interest in the goods by taking possession of the goods only in the circumstances described in Section 9--316(d).  (c) Collateral in possession of person other than debtor. With respect to  collateral other than certificated securities and goods covered by a document,  a  secured  party  takes  possession  of  collateral  in  the possession  of  a  person other than the debtor, the secured party, or a lessee of the collateral from the debtor in the ordinary course  of  the debtor's business, when:       (1) the person in possession authenticates a record acknowledging            that  it  holds  possession of the collateral for the secured            party's benefit; or       (2) the person takes possession of the  collateral  after  having            authenticated  a  record  acknowledging  that  it  will  hold            possession of collateral for the secured party's benefit.  (d) Time of perfection by possession; continuation of  perfection.  If perfection  of  a  security  interest  depends  upon  possession  of the collateral by a secured party, perfection occurs  no  earlier  than  the time  the  secured  party  takes possession and continues only while the secured party retains possession.  (e) Time of perfection by  delivery;  continuation  of  perfection.  A security  interest  in  a  certificated  security  in registered form is perfected by delivery when delivery of the certificated security  occurs under  Section 8--301 and remains perfected by delivery until the debtor obtains possession of the security certificate.  (f) Acknowledgment not required. A person in possession of  collateral is  not  required  to acknowledge that it holds possession for a secured party's benefit.  (g) Effectiveness of acknowledgment; no duties or confirmation.  If  a person  acknowledges  that  it  holds possession for the secured party's benefit:       (1) the acknowledgment  is  effective  under  subsection  (c)  or            Section  8--301(a),  even  if the acknowledgment violates the            rights of a debtor; and       (2) unless the person otherwise agrees or  law  other  than  this            article  otherwise provides, the person does not owe any duty            to the secured party and  is  not  required  to  confirm  the            acknowledgment to another person.  (h) Secured  party's  delivery  to person other than debtor. A secured party having possession of collateral does not relinquish possession  by delivering  the collateral to a person other than the debtor or a lessee of the collateral from the debtor in the ordinary course of the debtor's business if  the  person  was  instructed  before  the  delivery  or  is instructed contemporaneously with the delivery:       (1) to  hold possession of the collateral for the secured party's            benefit; or       (2) to redeliver the collateral to the secured party.  (i) Effect  of  delivery  under   subsection   (h);   no   duties   or confirmation.  A secured party does not relinquish possession, even if a  delivery  under subsection (h) violates the rights of a debtor. A person to which collateral is delivered under subsection (h) does not  owe  any duty to the secured party and is not required to confirm the delivery to another person unless the person otherwise agrees or law other than this article otherwise provides.  (j) Cooperative interests. Subsections (a) through (i) do not apply to cooperative interests.