Question

What 3 elements must exist for a security agreement to ATTACH:

Answer 1

For a security agreement to attach, three elements must exist: debtor's rights in the collateral, value given, and a written security agreement.

Step-by-step explanation:

In order for a security agreement to attach, three elements must exist:

1. Debtor has rights in the collateral: The debtor must have some level of ownership or possessory interest in the asset being pledged as collateral.
2. Value has been given: The creditor must have provided some kind of value in exchange for the security interest.
3. Security Agreement: There must be a written agreement or contract between the debtor and creditor that creates a security interest in the collateral.