2. Creation of an Enforceable Security Interest Flashcards
1
Q
What is required for a security to interest to be enforceable?
A
It must attach
2
Q
What are the three requirements for a security interest to attach?
A
- Value
- Contract
- Rights
3
Q
Attachment
What is the value requirement?
A
CR must pay money or extend some other value
4
Q
Attachment
What is the contract requirement?
A
The secured transaction must be evidenced in a contract
5
Q
Attachment
What are the two requirements for a contract?
A
- Signed by DR
- Reasonably ID collateral
6
Q
Attachment
In what one instance will a contract not be required?
A
CR has already taken possession
7
Q
Attachment
What is the rights requirement?
A
DR must have rights in the collateral
8
Q
Attachment
What is the one instance in which an after-acquired collateral clause will not be allowed?
A
DR is a consumer
