Also known as: attach security interest · attached security interest · attaching security interest · attachments of security interests · attachment · security interest attachment · UCC § 9-203
Written by attorneys · grounded in primary & secondary sources — see below
A security interest becomes enforceable against the debtor with respect to the collateral when value has been given, the debtor has rights in the collateral, and the parties have authenticated a security agreement that reasonably identifies the collateral. Attachment occurs at that moment unless an agreement expressly postpones the time of attachment. Once attached, the secured party may enforce the interest against the debtor.
Atlas Ventures noticed the deposition of a corporate officer and served a subpoena duces tecum seeking records of equipment pledged as collateral. The notice listed the specific documents in an attachment. Because the attachment of the security interest had already occurred under the authenticated agreement, the secured party could enforce its rights to the listed items during the deposition.
After a jury acquitted Adrian Aguilar on a lesser charge, prosecutors sought to pursue a greater offense arising from the same conduct involving pledged inventory. Because attachment of the security interest had already made the creditor's rights enforceable, the prior acquittal prevented further prosecution that would undermine the attached interest.
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Azure Solutions delivered equipment to Alice Atkins after she signed a security agreement and received financing. Value had been given and the agreement reasonably identified the collateral. The security interest attached immediately, allowing the creditor to enforce its rights against the equipment upon default.
A creditor obtained a judgment against a trust beneficiary who had granted a security interest in future distributions. Because the beneficiary's interest was not subject to a spendthrift provision, the court authorized attachment of present and future distributions to satisfy the attached security interest.
A lender sought to attach real property pledged as collateral before judgment in an ordinary civil action. The debtor had authenticated a security agreement and the lender had given value. Attachment of the security interest occurred, but the court required notice and a hearing to satisfy due process before seizure.
The IRS attempted to attach a tax lien to property held by a married couple as tenants by the entirety after one spouse granted a security interest in the parcel. Because the security interest had attached upon authentication and delivery of value, the lien could reach only the debtor spouse's interest in the collateral.
A security interest attaches when it 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 parties have authenticated a security agreement that reasonably identifies the collateral, unless the agreement postpones attachment.
Attachment makes the security interest enforceable against the debtor. Without attachment there is no security interest at all, and the secured party cannot realize on the collateral even against the debtor.
…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…