To create an enforceable security interest, the secured party must give value.

Question

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This is a requirement under Article 9 of the Uniform Commercial Code (UCC), which governs secured transactions. The secured party must give value (i.e. provide something of economic or financial benefit) in exchange for the security interest in order for it to be enforceable against third parties. Examples of value given by the secured party include loans, purchases, or services rendered.

To Create an Enforceable Security Interest, the Secured Party Must