D is corrent. In order for a security interest to attach, there must be a security agreement. It may be oral if the secured party obtains possession or control of the collateral. In either case, the debtor must have agreed to the security interest. The secured party must also give value and the debtor must have rights in the collateral.
A is incorrect. The creditor needs possession to get attachment only if the security agreement is oral.
B is incorrect. Filing a financing statement is one of the methods used to perfect a security interest but is not required for attachment.
C is incorrect. Denial of the debtor’s rights in the collateral is not an element of attachment. In fact, the debtor normally keeps possession of the collateral and, thus, retains rights in the collateral.
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