2. Creation of an Enforceable Security Interest Attachment

Question 1

Attachment means that the security interest is

Answer 1

Enforceable

Question 2

The three requirements for attachment:

Answer 2

1. VALUE must be given by creditor
2. a CONTRACT, called the security agreement, must evidence the secured transaction unless the secured party has taken possession of the collateral
3. RIGHTS in the collateral: Debtor must have rights in the collateral

Question 3

When must there be a security agreement?

Answer 3

If the debtor remains in possession of the collateral

Question 4

When required, the record must:

Answer 4

1. Be authenticated by debtor (signed or electronically marked)

and

2. Reasonable identify the collateral

Question 5

Are after-acquired collateral clauses” enforceable?

Answer 5

Yes