If the secured party does nothing more than enter into the security agreement with the debtor, that security interest is “unperfected”.

The task of analysing unperfected acts and their legal value, as well as custom, is more a matter of doctrine, however.

An unperfected security interest may be completely valid and enforceable against the debtor, but may not be effective against third parties or may be subordinate to the rights of certain third parties, such as the trustee in a bankruptcy proceeding or creditors of the debtor.