Although there are still paper share certificates, electronic stock certificates have become popular in the digital age. Digital or electronic shares are simply the property of a company that is represented in an electronic register of shares of any kind. Electronic share certificates can be either certificates or non-certified securities, as shown above. Titles can, for example, be digitally signed securities in pdf form and be entered into an electronic stock register. If the e-share certificates are registered in a company register, but the purchaser of the share certificate does not obtain a certificate, the share certificate is a kind of unseified guarantee. Unse certified titles are tracked in the company`s books. Unlike certified securities, these securities are issued without a certificate of ownership. The company, the company`s transfer agent or broker provides proof of ownership to the owner through an account statement and regular updates. In summary, a security interest in electronic stock certificates can be enhanced by submitting a UCC-1 funding statement or by obtaining control as described above.

While perfection is a practical and economical option when submitting a UCC-1 funding return, perfection by controlling unsealed or certified security takes precedence over any UCC-1 deposit, regardless of filing date. It is therefore important to first identify the type of electronic stock and develop your interests accordingly to ensure that you are properly protected. When ownership of shares in a capital company is represented by a physical certificate, the UCC traditionally refers to interest as a certified guarantee. In the case of a certified guarantee, the conditions of perfection are met by the control when the insured party obtains possession of the certificate of participation, usually at the same time as a power of action exercised with respect to the insured party or in raw materials. The power of action allows the insured party to transfer the borrower`s certificate to a buyer if the insured party imposes its security interests and sells the guarantees in the event of enforced execution. Methods for developing a safety interest under the UCC vary depending on the type of warranty. In accordance with UCC Section 9, corporate share certificates are a type of locked-in asset consisting of certified securities and non-certified securities. A security interest in investment real estate is (i) enhanced by submitting a completed UCC-1 funding return to the appropriate depositing agency or (ii) by review.