Ala. Code
Code of Alabama

Ala. Code § 7-9-305 (2026)

When Possession by Secured Party Perfects Security Interest Without Filing.

✓ official Alabama Legislature (ALISON) text, current July 2026
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Repealed by Act 2001-481, p. 647, § 4, effective January 1, 2002.

(Acts 1965, No. 549, p. 811; Acts 1981, No. 81-312, p. 399; Acts 1997, No. 97-702, §2.)

Notes of Decisions
Cited in 7 cases, 1984–2005 · leading case: Mims v. First Citizens Bank, 913 So. 2d 1098 (Ala. Civ. App. 2005).
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Mims v. First Citizens Bank, 913 So. 2d 1098 (Ala. Civ. App. 2005). · cites it 6× “" Former § 7-9-305 provided in pertinent part: "A security interest in .”
Mattheiss v. Title Loan Express (In Re Mattheiss), 214 B.R. 20 (Bankr. N.D. Ala. 1997). · cites it 4× “In the case of vehicles, that means perfection must be by actual possession pursuant to Ala.Code § 7-9-305 or on the title under the Ala.”
Morgan v. Farmers & Merchants Bank, 856 So. 2d 811 (Ala. 2003). · cites it 4× “" Ala. Code 1975, § 7-9-305 (effective January 1, 1998): "A security interest in goods, instruments, money, negotiable documents or chattel paper may be perfected by the secured party's taking possession of the collateral.”
In Re Davis, 269 B.R. 914 (Bankr. M.D. Ala. 2001). · cites it 2× “Ala. Code § 7-9-305 . 1 However, this general provision must give way to the more specific provisions of Alabama Code § 32-8-60 and 61.”
White v. Dawson (In Re Dawson), 52 B.R. 444 (Bankr. N.D. Ala. 1984). “Code Section 7-9-305 (1975). The Bank, therefore, did not have a perfected Article 9 security interest on September 2, 1983, the date of debtor’s Chapter 7 petition.”
In Re Windham Power Lifts Inc., 91 B.R. 595 (Bankr. M.D. Ala. 1988). “Code § 7-9-305 (1975). Further, under Ala.Code § 7-8-302 (1975) an endorsement of a registered security, i.”
Gillian v. Covington Cnty. Bank (In re Little), 78 B.R. 610 (Bankr. M.D. Ala. 1987). “Code § 7-9-305 (1975). If for some reason the mortgagee never does perfect the ship mortgage lien under the Ship Mortgage Act, the debt owed by the mortgagor to the mortgagee (or assign-ee holding a security interest in the mortgage note) is, nevertheless, an asset on which the…”
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