Attachment

Question 1

Effect of attachment

Answer 1

Once SI has attached, SP has the enforcement rights under Article 9 (including right to repossess)

Question 2

When SI attaches

Answer 2

(1) SP gives VALUE;
(2) Debtor has RIGHTS in the collateral; and
(3) Debtor has authenticated a security AGREEMENT that sufficiently describes the collateral

Question 3

Description requirement of security agreement

Answer 3

The description of collateral must reasonably identify what is described, including by UCC type (except for a transaction with a consumer for consumer goods)

A super-generic description (e.g., “All Debtor’s property”) is insufficient

Question 4

Attachment of after-acquired collateral

Answer 4

SI attaches to after-acquired collateral if the agreement contains an express after-acquired- collateral clause

Question 5

Automatic SI in after-acquired collateral (without clause)

Answer 5

• An interest in INVENTORY or ACCOUNTS receivable automatically creates SI in after-acquired collateral

Question 6

Attaching future advances

Answer 6

The security agreement can provide that the collateral secured future advances (more money loaned to debtor after agreement, that also turns into collateral) (e.g., revolving-credit agreement)

Question 7

Attaching proceeds

Answer 7

SI automatically extends to identifiable proceeds of the collateral

Question 8

After-acquired collateral rule for consumer goods

Answer 8

A security agreement can’t cover after-acquired consumer goods unless Debtor acquires rights in the good within 10 days of the SP giving value