Peter owns a hardware store. Jeff is in possession of some of Peter’s inventory; the inventory was damaged in shipment, and Peter hired Jeff to repair it so that Peter would be able to sell it.
Peter had obtained a loan from Putnam County Bank in the amount of $10,000, and had granted the Bank a security interest in all of his inventory (presently owned and after-acquired). Which statement correctly describes how can Putnam County Bank perfect its security interest in Peter’s inventory that is in Jeff’s possession?
1. Putnam County Bank can give “public notice” of its interest in the inventory by, for example, putting a notice in a local newspaper that Jeff is likely to read.
2. Putnam County Bank can send an authenticated notification to Jeff informing Jeff that Putnam County Bank has a security interest in the inventory. If this notification is received by Jeff, Putnam County’s security interest is perfected.
3. Putnam County Bank can file a proper financing statement as to the inventory in the appropriate office.
4. Putnam County Bank can file a proper financing statement as to the goods in question, but it must be readily available on file and properly indexed at the appropriate office.