ST: Attachment Flashcards
1
Q
Attachment Requires:
A
- Security Agreement
- Value Given by SP
- D must have rights to the collateral
2
Q
SA:
A
Unless the collateral is in possession or control of SP, a written SA is required.
*pledge–oral
3
Q
Form of SA:
A
- Must evidence by a record and must show an INTENT to create a SI.
- Must be Authenticated by D.
- Must Contain a DESCRIPTION of collateral: reasonably identify the collateral.
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.
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.