Under the UCC Secured Transactions Article, which of the following is required for the 'attachment' of a security interest?

Answer options:

Filing a financing statement.

The debtor must be insolvent.

The creditor must take possession of the collateral.

The debtor must have rights in the collateral.

How to approach this question

Attachment Requirements (VRD): Value given, Rights in collateral (Debtor), Description (Agreement) or Possession.

Full Answer

D.The debtor must have rights in the collateral.✓ Correct

Attachment requires three elements: (1) Value given by creditor, (2) Rights in collateral held by debtor, and (3) Authenticated security agreement or possession/control of collateral.

Common mistakes

Confusing Attachment (creation of right against debtor) with Perfection (creation of right against third parties/filing).

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