Which statement about authorization to file and perfect on behalf of the secured party is true?

• A. It is included in the security agreement to permit the secured party to file and perfect the lien.
• B. It must be notarized by a public notary.
• C. It is optional and not required if the debtor signs the security agreement.
• D. It automatically transfers to any successor secured party.

Answer: (A)

Authorization to file and perfect is typically provided directly in the security agreement. That clause grants the secured party the power to file a financing statement and take the steps needed to perfect the security interest without needing the debtor’s further consent each time. This ensures perfection can happen promptly and protects the secured party’s rights against third parties. Notarization is not a requirement for this authorization, and even if the debtor signs the security agreement, the authorization to file remains the source of power rather than something optional. It does not automatically transfer to a successor secured party; when the secured interest is assigned, the new holder usually needs its own authorization or assignment to file.