ST: Attachment

Question 1

Attachment Requires:

Answer 1

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

Question 2

SA:

Answer 2

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

*pledge–oral

Question 3

Form of SA:

Answer 3

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.

Question 4

SP gives VALUE

Answer 4

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.

Question 5

D must have rights to collateral.

Answer 5

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.