ST: Attachment Flashcards

1
Q

Attachment Requires:

A
  1. Security Agreement
  2. Value Given by SP
  3. D must have rights to the collateral
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2
Q

SA:

A

Unless the collateral is in possession or control of SP, a written SA is required.

*pledge–oral

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3
Q

Form of SA:

A
  1. Must evidence by a record and must show an INTENT to create a SI.
  2. Must be Authenticated by D.
  3. Must Contain a DESCRIPTION of collateral: reasonably identify the collateral.
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4
Q

SP gives VALUE

A

Value defn liberal. Any consideration sufficient to support a simple K is enough. Even past consideration is enough. The D always gives value because the debtor, at a minimum, promises to pay.
So question is whether the SP gave value.

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5
Q

D must have rights to collateral.

A

The D must have rights in the collateral because the D cannot grant a contingent property interest in property that it does not own.

  • Once last element completes–SI attaches.
  • Don’t confuse having rights in collateral with having title to collateral. Under Art. 9, title to goods matters only for consignments. For attachment, a limited right in collateral is sufficient.
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