Creation of A9 security interest (Attachment)

Question 1

Attachment elements (3)

Answer 1

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

Question 2

WRITTEN security agreement required UNLESS

Answer 2

secured party in possession or control of collateral pursuant to an agreement

(can be oral)

Question 3

What’s a security agreement?

Answer 3

agreement b/w debtor and secured party that CREATES the security interest

Question 4

If collateral is in possession of secured party pursuant to oral security agreement (e.g. I’ll loan you $50 but we agree that I will keep your watch until you pay me back, we agree that I can sell your watch), this meets the “security agreement” requirement. Such an arrangement is called…

Answer 4

a pledge

Question 5

Form of security agreement (when written) (3)

Answer 5

1) agreement must be evidenced by a record (written or electronically stored info) and must show an INTENT to create a security interest
2) agreement must be AUTHENTICATED by debtor (signed, any symbol w/ present intent to authenticate)
3) agreement must contain a DESCRIPTION of the collateral - must “reasonably identify” the collateral (“all of debtor’s property” is NOT reasonable identification)- can be specifically or by type

Question 6

Secured party must have given value

Answer 6

any consideration sufficient to support simple K enough

even PAST consideration enough

Question 7

Debtor must have rights in the collateral b/c…

Answer 7

can’t grant a contingent property interest in property that it does not own