Article 10 - Attachment of Security Interest
(1) Subject to paragraphs (2) and (8), a
Security Interest attaches to Collateral with effect from the date of the Security Agreement when the following conditions are met:
Collateral is or becomes identifiable;
Debtor has a present interest in the Collateral or power to transfer a present interest in the Collateral to a Secured Party
(C) there exists a current obligation from the
Debtor to the Creditor which is to be secured on the Collateral, and
Value is given for the Security Interest; or
Debtor does an act by which the Security Interest arises
regardless of the order of occurrence of these events or whether the
Debtor is permitted by the Security Agreement to dispose of the Collateral free of the Security Interest.
(2) The parties may expressly agree that the
Security Interest attaches at a later specified time or on the occurrence of some future event that will occur, in which case it attaches at that specified time. Reference to a floating charge is not an agreement that the Security Interest attaches at a later time than the time specified in paragraph (1).
(3) For the purposes of paragraph 1(B), a
Debtor has rights in Goods that are leased or consigned to the Debtor, or sold to the Debtor under a hire-purchase agreement or conditional sale agreement (including an agreement to sell subject to retention of title) no later than when the Debtor obtains possession of the Goods.
Security Agreement may provide for a Security Interest in after-acquired Personal Property.
(5) When a
Security Interest attaches to Collateral which is an Account, a Document, an Intangible, an Instrument or Investment Property, it also attaches to any Supporting Obligation.
(6) The attachment of a
Security Interest in a Securities Account or a Commodity Account is also attachment of a Security Interest in the Security Entitlements or Commodity Contracts carried in the Securities Account or Commodity Account.
(7) If, after attachment of a
Security Interest to Collateral, any of the conditions in Article 10(1)(A) to (C) cease to be satisfied, the Security Interest thereupon ceases to be attached to the Collateral but may be revived with effect from the date of the Security Agreement as soon as such conditions are again satisfied.
(8) In the case of
Collateral in the form of Financial Collateral, a Security Interest attaches when:
Debtor has transfer authority with respect to the Financial Collateral; and
Secured Party has control of the Financial Collateral pursuant to a Security Agreement.