Attachment

Question 1

Attachment general rule

Answer 1

Attachment gives the creditor rights against the debtor in the collateral. To attach a security interest:
1. either the debtor must authenticate a security agreement granting a security interest in collateral that describes the collateral or the creditor must take take possession or control of the collateral,
2. the creditor must give value, and
3. the debtor must have rights in the collateral.
A security agreement that includes an after-acquired property clause attaches when the debtor obtains an interest in the property.

Question 2

PMSI - definition

Answer 2

A purchase money security interest is arises when

1. a creditor sells the goods to the debtor on credit, retaining a security interest in the goods for all or part of the purchase price; or
2. a creditor advances funds that are used by the debtor to purchase the goods.