A is corrent because a security interest attaches when all of the following have been met, in any order: The debtor has rights in the collateral, the creditor extends value, and a record of the security agreement exists. Thus, the creditor must give value for attachment to occur.
B is incorrect because the creditor may create the security interest by taking possession of the collateral; no written agreement is needed then.
C is incorrect because the creditor does not have to file a financing statement for the security to attach. A creditor may file a financing statement to perfect his security interest.
D is incorrect because there is no requirement that the debtor retain possession of the collateral.
|
