"Attachment" occurs when a secured party gives value, the debtor has acquired rights in the collateral, and:
A) the collateral is delivered to the borrower.
B) the debtor has completed his obligation to pay.
C) the debtor and secured party have an agreement.
D) All of these.

Question

Quizplus · Accepted Answer

Attachment of a security interest occurs when three conditions are met: the secured party gives value, the debtor has rights in the collateral, and there is an agreement (usually a security agreement) between the debtor and the secured party that the interest attaches. Delivery of collateral to the borrower or completion of the debtor's obligation to pay are not required for attachment.

"Attachment" Occurs When a Secured Party Gives Value, the Debtor