Title 11, Chapter 9, Section 203
Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites.
(a) Attachment. A security interest attaches to collateral when it
becomes enforceable against the debtor with respect to the
collateral, unless an agreement expressly postpones the time of
(b) Enforceability. Except as otherwise provided in subsections (c)
through (i) of this Code section, a security interest is enforceable
against the debtor and third parties with respect to the collateral
(1) Value has been given;
(2) The debtor has rights in the collateral or the power to
transfer rights in the collateral to a secured party; and
(3) One of the following conditions is met:
(A) The debtor has authenticated a security agreement that
provides a description of the collateral and, if the security
interest covers timber to be cut, a description of the land
(B) The collateral is not a certificated security and is in the possession of the secured party under Code Section 11-9-313 pursuant to the debtor's security agreement;
(C) The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under Code Section 11-8-301 pursuant to the debtor's security agreement; or
(D) The collateral is deposit accounts, electronic chattel paper, investment property, or letter of credit rights, and the secured party has control under Code Section 11-9-104, 11-9-105, 11-9-106, or 11-9-107 pursuant to the debtor's security agreement.
(c) Other provisions of this title. Subsection (b) of this Code section is subject to Code Section 11-4-210 on the security interest of a collecting bank, Code Section 11-5-118 on the security interest of a letter of credit issuer or nominated person, Code Section 11-9-110 on a security interest arising under Article 2 or 2A of this title, and Code Section 11-9-206 on security interests in investment property.
(d) When person becomes bound by another person's security
agreement. A person becomes bound as debtor by a security agreement
entered into by another person if, by operation of law other than
this article or by contract:
(1) The security agreement becomes effective to create a security
interest in the person's property; or
(2) The person becomes generally obligated for the obligations of
the other person, including the obligation secured under the
security agreement, and acquires or succeeds to all or
substantially all of the assets of the other person.
(e) Effect of new debtor becoming bound. If a new debtor becomes
bound as debtor by a security agreement entered into by another
(1) The agreement satisfies paragraph (3) of subsection (b) of
this Code section with respect to existing or after acquired
property of the new debtor to the extent the property is described
in the agreement; and
(2) Another agreement is not necessary to make a security interest
in the property enforceable.
(f) Proceeds and supporting obligations. The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by Code Section 11-9-315 and is also attachment of a security interest in a supporting obligation for the collateral.
(g) Lien securing right to payment. The attachment of a security
interest in a right to payment or performance secured by a security
interest or other lien on personal or real property is also
attachment of a security interest in the security interest,
mortgage, or other lien.
(h) Security entitlement carried in securities account. The
attachment of a security interest in a securities account is also
attachment of a security interest in the security entitlements
carried in the securities account.
(i) Commodity contracts carried in commodity account. The
attachment of a security interest in a commodity account is also
attachment of a security interest in the commodity contract carried
in the commodity account.