C is corrent. A security interest attaches when the following occur, in any order: secured creditor gives value, debtor has rights in the collateral, and a security agreement exists.
A is incorrect. If the secured creditor takes possession of the collateral, or has control of certain types of collateral, the security agreement between the parties may be oral. In the other instances, the security agreement must be in writing or authenticated electronic form, demonstrate the debtor’s intent to create a security interest, and describe the collateral.
B is incorrect. Possession of the collateral is a method of perfecting a security interest; however, it is not essential to the creation or attachment of a security interest.
D is incorrect. Filing a financing statement is a method of perfecting a security interest; however, it is not essential to the creation or attachment of a security interest.
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