Term
| What three conditions must exist for a security interest to attach to collateral: |
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Definition
1. The secured party must have given value (e.g., giving a loan)
2. The debtor must have rights in the collateral, and
3. The debtor must have authenticated a security agreement that describes the collateral, or the secured party has possession or control of the collateral pursuant to a security agreement |
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Term
| How can a security interest be perfected? |
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Definition
1. Filing a financing statement with the state corporation commission,
2. Possession or control of the collateral (required for deposit accounts and other intangible property), or
3. Automatic perfection (either temporary or permanent) |
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Term
| Is perfection necessary for a secured party to enforce his rights against the debtor? |
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Definition
| No, only against third parties (so it establishes priority) |
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Term
| Can a party have a security interest in real estate under Article 9? |
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Definition
| No, but they can have an interest in a secured obligation, such as a mortgage |
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