Which of the following is NOT one of the three requirements for attachment of a security interest?

Which of the following is NOT one of the three requirements for attachment of a security interest?

• A. Payment of the debt
• B. Value given by the secured party to the debtor
• C. Debtor has Rights in the collateral
• D. Contract agreement that security interest attach

Answer: (A)

Attachment happens when the secured party has provided value, the debtor has rights in the collateral, and there is a security agreement that describes the collateral (or the secured party has possession or control of the collateral). Payment of the debt is not part of these requirements. In other words, the security interest becomes enforceable against the debtor once those three elements are in place, even before any payment is made.

Attachment happens when the secured party has provided value, the debtor has rights in the collateral, and there is a security agreement that describes the collateral (or the secured party has possession or control of the collateral). Payment of the debt is not part of these requirements. In other words, the security interest becomes enforceable against the debtor once those three elements are in place, even before any payment is made.