A debtor must have rights in the collateral for a security interest to attach.

Name: A debtor must have rights in the collateral for a security interest to attach.
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Question

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This statement is true. In order for a security interest to attach, the debtor must have rights in the collateral. This means that the debtor must own the collateral or have some other kind of legal interest in it, such as a leasehold interest. Without such rights, a security interest cannot be created.

A Debtor Must Have Rights in the Collateral for a Security