Attachment

Question 1

For a secured Party to have a valid interest in collateral, it must first

Answer 1

Attach

Question 2

3 requirements for attachment (VRSA)

Answer 2

1. Value given by secured party
2. Debtor has rights in collateral
3. Authenticated Security agreement; or
   SP has possession/control

Question 3

An authenticated security agreement must (RAD)

Answer 3

1) A record
2) Authenticated by Debtor
3) that reasonably identifies collateral (for consumer goods/commercial tort claims the item must be specifically identified

Question 4

What types of collateral can attachment be by possession

Answer 4

1) Consumer goods
2) Equipment
3) Farm products
4) Chattel paper
5) Certificated securities
6) Instruments
7) money

Question 5

What types of collateral can attachment by control

Answer 5

1)Electronic chattel paper
2) Investment property
3) Letter of credit rights
4) Deposit accounts

Question 6

Attachment by control or possession must

Answer 6

Be pursuant to an oral or written security agreement

Question 7

Rights and Duties of the secured party in possession

Answer 7

The secured party must act with reasonable care with respect to the collateral
Must keep the collateral identifiable; and
Must relinquish the collateral once the obligation has been satisfied
May charge the debtor for reasonable expenses for storing and maintaining the collateral