Attachment

Question 1

REQUISITES FOR ATTACHMENT

Answer 1

A security interest is not enforceable unless it has attached. There are three requirements for attachment, which must coexist:
* The parties must agree to create the security interest (that is, they must enter into a security agreement), as evidenced by (1) the creditor taking possession of the collateral, (2) an authenticated security agreement, or (3) the creditor taking control of nonconsumer deposit accounts, electronic chattel paper, and investment property, and
* Value must be given by the secured party, and
* The debtor must have rights (for example, ownership) in the collateral

Question 2

Authenticated Security Agreement

Answer 2

Evidenced by a Record
The agreement must be evidenced by a record (that is, written or electronically stored information) and must show an intent to create a security interest.
b. Agreement Must Be Authenticated
The agreement must be authenticated by the debtor. This usually means that it is signed by the debtor. Any symbol, including an electronic symbol, that is made with the present intent to authenticate the record will work (for example, an “X,” or a smiley face).
c. Description of Collateral
The agreement must contain a description of the collateral (and if the security interest covers timber to be cut, a description of the land concerned). The description must reasonably identify the collateral. Collateral can be described broadly by category or type (for example, “all of the debtor’s equipment”) or specificall