Chapter 4: Attachments

Question 1

What are the 3 requirements for an “attachment?

Answer 1

“Violet Roses Smell Amazing”

• VALUE given by secured party
• Debtor has RIGHTS in the collateral
• Existence of a SECURITY AGREEMENT

Question 2

“Value” can be given by providing…

Answer 2

“consideration”

• no new value req.

Question 3

“Rights” in the collateral only extends to rights of:

Answer 3

ONLY rights the debtor has in the collateral

Question 4

“Security Agreement” is…

Answer 4

an authenticated record (usually)
- Record: something retrievable and authenticated by debtor
- must reasonably describe the collateral

OR

by possession or control of collateral (oral or unauthenticated)
possession: something you can hold in your hands (i.e. goods, equipment, chattel paper, etc.)
control: you CANT hold it in your hands (i.e. deposit accounts)

Question 5

Rights/Duties of the secured party in possession

Answer 5

• must act with reasonable care w/ collateral
• must keep collateral identifiable
  must relinquish collateral once obl