Creates a valid security interest against the debtor
- Attachment occurs when the last of 3 requirements has occurred:
- 1) value must be given (usually past or present loan or a binding promise of a future loan);
- 2) D must have rights in the collateral to convey; and
- 3) D must have "authenticated" a written security agreement that provides an adequate dsecription of the collateral."
Note - authenticated meanse signed or otherwise assented in some perceivable form, e.g.
, sending an e-mail or voicemail
Note - oral agreements are acceptable if D agreed to put the collateral in C's possession or control.
Note - description of the collateral in the SA must "reasonably identify," generally by categories discussed earlier, not just the phrase, "all assets." There is nothing wrong with attaching to all of someone's assets, however they need to be properly described.
In consumer transactions, the description must be more specific and after-aquired-collateral clauses only apply to consumer goods if the consumer acquires the property w/in 10 days of the secured value has been given.