Creation of a Security Interest

Question 1

Requirements for Attachment

Answer 1

1. Security agreement
2. Value given
3. Debtor’s rights in collateral

Question 2

Requirement: Security Agreement

Answer 2

• Pledge: oral s/a whereby creditor keeps collateral
• Control: non-consumer deposit accounts, electronic chattel paper, investment property
• Writing: (1) record showing intent to create SI; (2) authentication/signature by debtor; (3) describes (reasonably ids) collateral

Question 3

Requirement: Value Given

Answer 3

• Any consideration is sufficient
• Past consideration sufficient if security intended as security for past consideration