Commonwealth Consolidated Acts Commonwealth Consolidated ActsSecurity interest is temporarily perfected
(1) A security interest in a negotiable instrument or an investment instrument that is perfected by possession or control is temporarily perfected for the period covered by subsection (2) if possession or control of the instrument is given to the grantor or the debtor at a particular time (the action time ) for the purpose of any of the following actions in relation to the instrument:
(a) sale;
(b) exchange;
(c) presentation;
(d) collection;
(e) renewal;
(f) registration (other than under this Act) for the purposes of a transfer.
(2) This subsection covers the period starting at the action time and ending at the end of 5 business days after the day the action time occurs.
Security interest becomes unperfected after 5 business days
(3) However, the security interest in the instrument becomes unperfected at the end of the period covered by subsection (2), unless the security interest in the instrument is perfected otherwise than under subsection (1) before the end of the period.