Attachment

Question 1

Attachment: Security Agreement

Answer 1

1) unless collateral is in control or possession of the secured party pursuant to an agreement
2) a written (or electronic) security agreement is required

Question 2

Three things required for attachment

Answer 2

1) security agreement
2) value has been given
3) debtor has rights in the collateral

Question 3

Oral Security agreements

Answer 3

1) only valid if collateral is in possession or control of the creditor
2) called a pledge

Question 4

Form of Security agreement when written

Answer 4

1) record (writing or electronically stored)
2) intent to create a security interest (no fancy language needed)
3) authenticated by debtor: signed by really any mark is ok
4) description of the collateral: “reasonably identify”, normal names or A9 categories work, watch for “supergeneric” language like “all of the debtor’s assets”

Question 5

Attachment: Must give value

Answer 5

1) value is broad: any consideration is enough including past consideration
2) the debtor always gives value because the debtor promises to pay or does pay
3) HAS THE SECURED PARTY GIVEN VALUE?

Question 6

Attachment: Debtor must have rights in the collateral

Answer 6

Cannot offer up something that you don’t own or have rights to

Question 7

Attachment timing

Answer 7

As soon as the 3 requirements happen

Question 8

Attachment purpose

Answer 8

Need to be a secured creditor and have rights pursuant to the debtor