Also known as: descriptions of the collateral · collateral description
Written by attorneys · grounded in primary & secondary sources — see below
A requirement in a security agreement that reasonably identifies the personal property subject to the security interest. The description enables attachment of the security interest when the debtor authenticates the agreement containing it.
Randall signed a one-page loan document with Southern Harvest that referred to all crops grown that season and any related government payments. The description allowed the security interest to attach to the harvested grain once Randall acquired rights in it. Southern Harvest could then enforce its interest against the stored grain after default.
Blake Street executed a security agreement with Compass Bank that failed to describe any collateral. The bank relied instead on a separate financing statement listing fixtures, equipment, and inventory. The absence of a description in the security agreement prevented attachment of the security interest.
Select any source to read its text and confirm it supports the definition.
A description is sufficient if it reasonably identifies the collateral, even if not specific or detailed. Reference to all crops of a stated season satisfies the requirement for a farmer whose operations are known to the secured party.
No. The security agreement itself must contain the description. A separate financing statement cannot substitute for the authenticated security agreement needed for enforceability.
No. The land-description requirement applies only to timber to be cut. A description by type and season is adequate for crops without identifying specific fields.