2. Attachment

Question 1

A security interest attaches when:

Answer 1

1. Value is given by the secured party.
2. The debtor has rights in the collateral.
3. Security agreement(must satisfy SOL):

-Authenticated (written) security agreement describing the collateral OR possession/control of collateral by the secured party.

-Reasonably identifies the collateral (e.g., “all equipment” is sufficient, but “all assets” is insufficient).

Question 2

How can a security agreement provide for an interest in after-acquired collateral?

Answer 2

A security agreement specifying interest in “inventory.”

Question 3

Accession

Answer 3

Identity retained after united with other goods, no effect on Security Interest;

if it commingled, identity lost, there’s a Security interest in resulting product.

Question 4

Proceeds

Answer 4

Attachment automatic to results to collateral disposal.