What is required for control of uncertificated investment property?

Control of uncertificated investment property is achieved through direct delivery on the issuer's books, which ensures that the secured party has the ability to direct the issuer of the investment property regarding transactions related to that property. Unlike certificated securities, which involve physical certificates that provide evidence of ownership, uncertificated investment property does not have such tangible documentation. Instead, the issuer’s books serve as the definitive record of ownership, and the secured party must be recognized as having a control interest in the investment property by recording that interest with the issuer.

Establishing control in this manner allows the secured party to effectively assert their rights to the investment property and ensures that they can act on behalf of the owner regarding the property. It also provides necessary notice to third parties about the secured party’s claim over the investment property.

The other options do not accurately reflect the requirement for control over uncertificated investment property. Receipt of a physical document by the creditor is not applicable to uncertificated investment property since it lacks any physical certificate. Documentation of ownership rights may support a claim but does not establish control. Establishing a power of attorney may grant authority to act but is not sufficient on its own to ensure control over the investment property as specified by the requisite UCC provisions