N.Y. UCC Law § 9-313

Section 9--313. When Possession by or Delivery to Secured Party Perfects\n Security Interest Without Filing.\n (a) Perfection by possession or delivery. Except as otherwise provided\nin subsection (b), a secured party may perfect a security interest in\ngoods, instruments, negotiable tangible documents, or tangible money by\ntaking possession of the collateral. A secured party may perfect a\nsecurity interest in certificated securities by taking delivery of the\ncertificated securities under Section 8--301.\n (b) Goods covered by certificate of title. With respect to goods\ncovered by a certificate of title issued by this state, a secured party\nmay perfect a security interest in the goods by taking possession of the\ngoods only in the circumstances described in Section 9--316(d).\n (c) Collateral in possession of person other than debtor. With respect\nto collateral other than certificated securities and goods covered by a\ndocument, a secured party takes possession of collateral in the\npossession of a person other than the debtor, the secured party, or a\nlessee of the collateral from the debtor in the ordinary course of the\ndebtor's business, when:\n (1) the person in possession signs a record acknowledging that it\n holds possession of the collateral for the secured party's\n benefit; or\n (2) the person takes possession of the collateral after having\n signed a record acknowledging that it will hold possession of\n the collateral for the secured party's benefit.\n (d) Time of perfection by possession; continuation of perfection. If\nperfection of a security interest depends upon possession of the\ncollateral by a secured party, perfection occurs not earlier than the\ntime the secured party takes possession and continues only while the\nsecured party retains possession.\n (e) Time of perfection by delivery; continuation of perfection. A\nsecurity interest in a certificated security in registered form is\nperfected by delivery when delivery of the certificated security occurs\nunder Section 8--301 and remains perfected by delivery until the debtor\nobtains possession of the security certificate.\n (f) Acknowledgment not required. A person in possession of collateral\nis not required to acknowledge that it holds possession for a secured\nparty's benefit.\n (g) Effectiveness of acknowledgment; no duties or confirmation. If a\nperson acknowledges that it holds possession for the secured party's\nbenefit:\n (1) the acknowledgment is effective under subsection (c) or\n Section 8--301(a), even if the acknowledgment violates the\n rights of a debtor; and\n (2) unless the person otherwise agrees or law other than this\n article otherwise provides, the person does not owe any duty\n to the secured party and is not required to confirm the\n acknowledgment to another person.\n (h) Secured party's delivery to person other than debtor. A secured\nparty having possession of collateral does not relinquish possession by\ndelivering the collateral to a person other than the debtor or a lessee\nof the collateral from the debtor in the ordinary course of the debtor's\nbusiness if the person was instructed before the delivery or is\ninstructed contemporaneously with the delivery:\n (1) to hold possession of the collateral for the secured party's\n benefit; or\n (2) to redeliver the collateral to the secured party.\n (i) Effect of delivery under subsection (h); no duties or\nconfirmation. A secured party does not relinquish possession, even if a\ndelivery under subsection (h) violates the rights of a debtor
ructed contemporaneously with the delivery:\n (1) to hold possession of the collateral for the secured party's\n benefit; or\n (2) to redeliver the collateral to the secured party.\n (i) Effect of delivery under subsection (h); no duties or\nconfirmation. A secured party does not relinquish possession, even if a\ndelivery under subsection (h) violates the rights of a debtor. A person\nto which collateral is delivered under subsection (h) does not owe any\nduty to the secured party and is not required to confirm the delivery to\nanother person unless the person otherwise agrees or law other than this\narticle otherwise provides.\n (j) Cooperative interests. Subsections (a) through (i) do not apply to\ncooperative interests.\n