For certificated investment property, what is required for a creditor to obtain control?

A creditor must obtain control over certificated investment property by achieving possession of the certificate and executing a proper endorsement. Control, in the context of investment property, is essential for a secured creditor to perfect their security interest.

Having possession of the certificate ensures that the creditor has direct control over the physical representation of the investment. This is a key aspect since the certificate serves as proof of ownership and claims over the underlying asset. Furthermore, an endorsement signifies the transfer of rights and establishes that the creditor is recognized as the owner, thereby effectively solidifying their claim to the asset.

While options like delivery of the certificate alone or verification through a bank may seem plausible, they do not fully meet the criteria needed for control as defined by Article 9 of the UCC. Control is not merely about holding the certificate but also involves the legal acknowledgment of rights through proper endorsement. Similarly, creating an account statement does not equate to achieving control; it may provide information about the asset but does not confer ownership or rights over it.

Thus, the combination of possession and proper endorsement is the requirement for a creditor to obtain control over certificated investment property.