Attachment of a Security Interest
When Does a Security Interest Become Enforceable?
Attachment is the process that makes a security interest legally enforceable against the debtor. Before attachment occurs, the creditor generally cannot claim rights in the collateral.
- The secured party gives value, such as making a loan.
- The debtor has rights in the collateral.
- The debtor authenticates a security agreement describing the collateral, or the secured party possesses or controls the collateral where permitted.
Tip
Think of attachment as creating the legal relationship between the creditor and the collateral.
Summary
Attachment requires value, debtor rights in the collateral, and an enforceable security agreement or an accepted substitute.