A is corrent because attachment of a security interest in personal property occurs when the following three requirements have been fulfilled; the secured party gives value, the debtor has rights in the collateral, and a record of the security agreement must exist. The secured party gave value and the security agreement existed on June 3, but the debtor did not acquire any rights in the collateral until June 7, the day of the purchase.
B is incorrect because a purchase money secured lender is one who provides the value which is used to obtain the collateral. In this situation, Muni loaned Page the money to purchase the computers used as collateral and qualifies as a purchase money secured lender.
C is incorrect because attachment of a security interest in personal property occurs when the following three requirements have been fulfilled; the secured party gives value, the debtor has rights in the collateral, and a record of the security agreement must exist. On June 7 all three of these requirements have been met and attachment occurred.
D is incorrect because attachment cannot occur until the debtor acquires rights in the collateral. In this situation, Page Corp. does not purchase and acquire rights to the computers until June 7. Therefore, attachment cannot occur before June 7.
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