Perfection

{
  "id": "MLC-T-LAW-003711",
  "term": "Perfection",
  "field": "Law",
  "definition": "The process by which a secured creditor establishes priority rights in a debtor's collateral against third parties, such as other creditors or a bankruptcy trustee. Perfection is typically achieved by filing a public notice, like a UCC-1 financing statement, or by taking physical possession of the collateral. An unperfected security interest is enforceable against the debtor but is subordinate to perfected interests and certain other claims.",
  "url": "https://mlchart.com/terminology/law/perfection/"
}