Question

Under Article 9, for a security interest to be enforceable against a debtor, the interest must attach to the collateral. For attachment, three conditions must be met. What are those three conditions?

A) Attachment, perfection, and priority
B) Attachment, possession, and notice
C) Attachment, financing statement, and description
D) Attachment, possession, and perfection

Answer 1

The three conditions for a security interest attachment under Article 9 are: the debtor's rights in the collateral, value given by the secured party, and an authenticated security agreement with a description of the collateral or possession/control of the collateral by the secured party.

Step-by-step explanation:

Under Article 9 of the Uniform Commercial Code, for a security interest to be enforceable against a debtor, the interest must attach to the collateral. For attachment to occur, three conditions must be fulfilled:

• The debtor must have rights in the collateral or the power to transfer rights in the collateral to the secured party.
• Value must be given by the secured party.
• There must be an authenticated security agreement that provides a description of the collateral, or the secured party must have possession or control of the collateral pursuant to an agreement.

Therefore, the correct answer to the question is neither of the provided options as all three necessary conditions for attachment are not listed in any single option.