Attachment

Question 1

Attachment

Answer 1

Attachment requires:
1. An authenticated security agreement granting creditor a security interest in the collateral (or the creditor taking possession or control)
2. Creditor gave value
3. Debtor has rights in the collateral

Question 2

Security Agreement

Answer 2

The security agreement must be in writing, signed by the debtor, and must sufficiently describe the collateral (no supergeneric descriptions).

Question 3

After-Acquired Property

Answer 3

Without an explicit after-acquired property clause in the security agreement, the secured party’s security interest only reaches collateral that the debtor had rights in at the time he signed the agreement. If the agreement has an explicit clause, the interest will attach to later collateral as soon as the debtor acquires rights in it.

Question 4

After-Acquired Exceptions

Answer 4

Even without a clause, a security interest will attach automatically to collateral that is rapidly depleted and replenished (inventory and accounts) as well as to identifiable proceeds of collateral.

A clause does not apply to consumer goods, unless the debtor acquires rights in those goods within 10 days after the creditor gives value.

A clause does not apply to commercial tort claims.