Attachment (Creation of Security Interest)

Question 1

What does attachment do for creditor?

Answer 1

Establishes rights against debtor

Question 2

3 requirements for attachment?

Answer 2

1) parties must agree to create security agreement evidence by creditor taking possession of collateral, authenticated security agreement, OR creditor taking control of nonconsumer deposit accounts, deposit accounts, electronic chattel paper, and investment property
2) value must be given by secured party
AND
3) debtor must have rights in collateral

Question 3

A security interest is not enforceable until _________.

Answer 3

attached

Question 3

Requirements for an authenticated security agreement?

Answer 3

1) record (written/ESI) showing agreement AND intent to create SI
2) authenticated (signed) by debtor
3) description reasonably identifying collateral (supergeneric definitions NOT okay)

Question 4

What counts as consideration?

Answer 4

Any consideration, including past consideration