Also known as: attach a security interest · attaches a security interest · attaching a security interest · attached a security interest · attachment
Written by attorneys · grounded in primary & secondary sources — see below
The moment when a security interest in collateral becomes enforceable against the debtor with respect to the collateral. This occurs once value has been given, the debtor has rights in the collateral, and the debtor has authenticated a security agreement describing the collateral, unless the parties agree to postpone attachment.
Arcadia Retail grants a security interest in its inventory to a lender. The lender gives value by disbursing loan proceeds. Once Arcadia Retail authenticates the security agreement describing the inventory, the security interest attaches to the inventory even though the lender later lists related documents in an attachment to a deposition notice.
Adrian Aguilar pledges equipment as collateral for a loan from Aurora Biotech. After Aurora gives value and Adrian authenticates the security agreement, the security interest attaches to the equipment. Later criminal proceedings do not affect the already-attached security interest in the equipment.
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Apex Dynamics borrows funds from Alpine Mining and signs a security agreement covering its machinery. Alpine Mining gives value by disbursing the loan proceeds. Because Apex Dynamics has rights in the machinery and authenticated the agreement, the security interest attaches immediately to the machinery.
Anita Ali holds a beneficial interest in a trust that is not subject to a spendthrift provision. A creditor obtains a court order authorizing attachment of future distributions. Once the creditor gives value and Anita Ali authenticates a security agreement covering her interest, the security interest attaches to those distributions.
Amber Alonzo grants a security interest in her warehouse to a supplier. The supplier gives value and Amber authenticates the security agreement, so the security interest attaches to the warehouse. Any later attempt to seize the warehouse without notice raises separate due process concerns.
Albert Allen pledges equipment to a creditor who gives value and obtains an authenticated security agreement. The security interest attaches to the equipment. Any subsequent ex parte writ to seize the equipment raises due process issues separate from the completed attachment.
Attachment occurs when the interest becomes enforceable against the debtor. This requires that value has been given, the debtor has rights in the collateral, and the debtor has authenticated a security agreement describing the collateral, unless the parties agree otherwise.
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Attachment creates an enforceable interest against the debtor. Perfection provides priority against third parties and usually requires an additional step such as filing a financing statement.
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Yes. The statute expressly allows the parties to postpone the time of attachment by agreement even after the other requirements for enforceability have been met.
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…because the creditor must eventually prove his case in a judicial proceeding. They argue that the statutes are similar to the attachment statutes that this Court upheld in Ownbey v. Morgan , 256 U. S. 94, and Coffin Bros. v. Bennett , 277 U. S. 29. We think that the appellees' reliance on those cases is misplaced. In…