U.C.C. § 9-203 — Attachment and Enforceability of Security Interest; Proceeds; Supporting Obligations; Formal Requisites

Editorial note. Attachment occurs, and the security interest becomes enforceable against the debtor and third parties, when all three § 9-203(b) requirements are met. The security agreement authenticated by the debtor is the ordinary formal requirement, though possession or control may substitute for tangible or controllable collateral.

Editorial note. Section 9-203 is the Statute of Frauds for Article 9. Without an authenticated security agreement or possession/control, no enforceable security interest arises.

Editorial note. Section 9-203 is heavily litigated in bankruptcy, particularly on the sufficiency of the collateral description and on the authentication requirement in electronic transactions.

Editorial note. See U.C.C. §§ 9-102 (definitions of 'authenticate' and 'security agreement'); 9-108 (sufficiency of description); 9-308 (perfection generally); Restatement (Third) of Property: Mortgages (Am. L. Inst. 1997).

Editorial note. Every secured-lending transaction must satisfy § 9-203 to create an enforceable security interest. Documentation errors at attachment are ordinarily unfixable ex post.