§ 25‑9‑203. Attachment and enforceability of security interest; proceeds; supportingobligations; formal requisites.
(a) Attachment. Asecurity interest attaches to collateral when it becomes enforceable againstthe debtor with respect to the collateral, unless an agreement expresslypostpones the time of attachment.
(b) Enforceability. Exceptas otherwise provided in subsections (c) through (i) of this section, asecurity interest is enforceable against the debtor and third parties withrespect to the collateral only if:
(1) Value has beengiven;
(2) The debtor hasrights in the collateral or the power to transfer rights in the collateral to asecured party; and
(3) One of the followingconditions is met:
a. The debtor hasauthenticated a security agreement that provides a description of thecollateral and, if the security interest covers timber to be cut, a descriptionof the land concerned;
b. The collateral isnot a certificated security and is in the possession of the secured party underG.S. 25‑9‑313 pursuant to the debtor's security agreement;
c. The collateral is acertificated security in registered form and the security certificate has beendelivered to the secured party under G.S. 25‑8‑301 pursuant to thedebtor's security agreement; or
d. The collateral isdeposit accounts, electronic chattel paper, investment property, letter‑of‑creditrights, or electronic documents, and the secured party has control under G.S.25‑7‑106, 25‑9‑104, 25‑9‑105, 25‑9‑106,or 25‑9‑107 pursuant to the debtor's security agreement.
(c) Other UCCprovisions. Subsection (b) of this section is subject to G.S. 25‑4‑208on the security interest of a collecting bank, G.S. 25‑5‑118 on thesecurity interest of a letter‑of‑credit issuer or nominated person,G.S. 25‑9‑110 on a security interest arising under Article 2 or 2Aof this Chapter, and G.S. 25‑9‑206 on security interests ininvestment property.
(d) When person becomesbound by another person's security agreement. A person becomes bound asdebtor by a security agreement entered into by another person if, by operationof law other than this Article or by contract:
(1) The securityagreement becomes effective to create a security interest in the person'sproperty; or
(2) The person becomesgenerally obligated for the obligations of the other person, including theobligation secured under the security agreement, and acquires or succeeds toall or substantially all of the assets of the other person.
(e) Effect of newdebtor becoming bound. If a new debtor becomes bound as debtor by a securityagreement entered into by another person:
(1) The agreementsatisfies subdivision (b)(3) of this section with respect to existing or after‑acquiredproperty of the new debtor to the extent the property is described in theagreement; and
(2) Another agreement isnot necessary to make a security interest in the property enforceable.
(f) Proceeds andsupporting obligations. The attachment of a security interest in collateralgives the secured party the rights to proceeds provided by G.S. 25‑9‑315and is also attachment of a security interest in a supporting obligation forthe collateral.
(g) Lien securing rightto payment. The attachment of a security interest in a right to payment orperformance secured by a security interest or other lien on personal or realproperty is also attachment of a security interest in the security interest,mortgage, or other lien.
(h) Securityentitlement carried in securities account. The attachment of a securityinterest in a securities account is also attachment of a security interest inthe security entitlements carried in the securities account.
(i) Commoditycontracts carried in commodity account. The attachment of a security interestin a commodity account is also attachment of a security interest in thecommodity contracts carried in the commodity account. (1997‑181, s. 5; 2000‑169,s. 1; 2006‑112, s. 45.)
§ 25‑9‑203. Attachment and enforceability of security interest; proceeds; supportingobligations; formal requisites.
(a) Attachment. Asecurity interest attaches to collateral when it becomes enforceable againstthe debtor with respect to the collateral, unless an agreement expresslypostpones the time of attachment.
(b) Enforceability. Exceptas otherwise provided in subsections (c) through (i) of this section, asecurity interest is enforceable against the debtor and third parties withrespect to the collateral only if:
(1) Value has beengiven;
(2) The debtor hasrights in the collateral or the power to transfer rights in the collateral to asecured party; and
(3) One of the followingconditions is met:
a. The debtor hasauthenticated a security agreement that provides a description of thecollateral and, if the security interest covers timber to be cut, a descriptionof the land concerned;
b. The collateral isnot a certificated security and is in the possession of the secured party underG.S. 25‑9‑313 pursuant to the debtor's security agreement;
c. The collateral is acertificated security in registered form and the security certificate has beendelivered to the secured party under G.S. 25‑8‑301 pursuant to thedebtor's security agreement; or
d. The collateral isdeposit accounts, electronic chattel paper, investment property, letter‑of‑creditrights, or electronic documents, and the secured party has control under G.S.25‑7‑106, 25‑9‑104, 25‑9‑105, 25‑9‑106,or 25‑9‑107 pursuant to the debtor's security agreement.
(c) Other UCCprovisions. Subsection (b) of this section is subject to G.S. 25‑4‑208on the security interest of a collecting bank, G.S. 25‑5‑118 on thesecurity interest of a letter‑of‑credit issuer or nominated person,G.S. 25‑9‑110 on a security interest arising under Article 2 or 2Aof this Chapter, and G.S. 25‑9‑206 on security interests ininvestment property.
(d) When person becomesbound by another person's security agreement. A person becomes bound asdebtor by a security agreement entered into by another person if, by operationof law other than this Article or by contract:
(1) The securityagreement becomes effective to create a security interest in the person'sproperty; or
(2) The person becomesgenerally obligated for the obligations of the other person, including theobligation secured under the security agreement, and acquires or succeeds toall or substantially all of the assets of the other person.
(e) Effect of newdebtor becoming bound. If a new debtor becomes bound as debtor by a securityagreement entered into by another person:
(1) The agreementsatisfies subdivision (b)(3) of this section with respect to existing or after‑acquiredproperty of the new debtor to the extent the property is described in theagreement; and
(2) Another agreement isnot necessary to make a security interest in the property enforceable.
(f) Proceeds andsupporting obligations. The attachment of a security interest in collateralgives the secured party the rights to proceeds provided by G.S. 25‑9‑315and is also attachment of a security interest in a supporting obligation forthe collateral.
(g) Lien securing rightto payment. The attachment of a security interest in a right to payment orperformance secured by a security interest or other lien on personal or realproperty is also attachment of a security interest in the security interest,mortgage, or other lien.
(h) Securityentitlement carried in securities account. The attachment of a securityinterest in a securities account is also attachment of a security interest inthe security entitlements carried in the securities account.
(i) Commoditycontracts carried in commodity account. The attachment of a security interestin a commodity account is also attachment of a security interest in thecommodity contracts carried in the commodity account. (1997‑181, s. 5; 2000‑169,s. 1; 2006‑112, s. 45.)
§ 25‑9‑203. Attachment and enforceability of security interest; proceeds; supportingobligations; formal requisites.
(a) Attachment. Asecurity interest attaches to collateral when it becomes enforceable againstthe debtor with respect to the collateral, unless an agreement expresslypostpones the time of attachment.
(b) Enforceability. Exceptas otherwise provided in subsections (c) through (i) of this section, asecurity interest is enforceable against the debtor and third parties withrespect to the collateral only if:
(1) Value has beengiven;
(2) The debtor hasrights in the collateral or the power to transfer rights in the collateral to asecured party; and
(3) One of the followingconditions is met:
a. The debtor hasauthenticated a security agreement that provides a description of thecollateral and, if the security interest covers timber to be cut, a descriptionof the land concerned;
b. The collateral isnot a certificated security and is in the possession of the secured party underG.S. 25‑9‑313 pursuant to the debtor's security agreement;
c. The collateral is acertificated security in registered form and the security certificate has beendelivered to the secured party under G.S. 25‑8‑301 pursuant to thedebtor's security agreement; or
d. The collateral isdeposit accounts, electronic chattel paper, investment property, letter‑of‑creditrights, or electronic documents, and the secured party has control under G.S.25‑7‑106, 25‑9‑104, 25‑9‑105, 25‑9‑106,or 25‑9‑107 pursuant to the debtor's security agreement.
(c) Other UCCprovisions. Subsection (b) of this section is subject to G.S. 25‑4‑208on the security interest of a collecting bank, G.S. 25‑5‑118 on thesecurity interest of a letter‑of‑credit issuer or nominated person,G.S. 25‑9‑110 on a security interest arising under Article 2 or 2Aof this Chapter, and G.S. 25‑9‑206 on security interests ininvestment property.
(d) When person becomesbound by another person's security agreement. A person becomes bound asdebtor by a security agreement entered into by another person if, by operationof law other than this Article or by contract:
(1) The securityagreement becomes effective to create a security interest in the person'sproperty; or
(2) The person becomesgenerally obligated for the obligations of the other person, including theobligation secured under the security agreement, and acquires or succeeds toall or substantially all of the assets of the other person.
(e) Effect of newdebtor becoming bound. If a new debtor becomes bound as debtor by a securityagreement entered into by another person:
(1) The agreementsatisfies subdivision (b)(3) of this section with respect to existing or after‑acquiredproperty of the new debtor to the extent the property is described in theagreement; and
(2) Another agreement isnot necessary to make a security interest in the property enforceable.
(f) Proceeds andsupporting obligations. The attachment of a security interest in collateralgives the secured party the rights to proceeds provided by G.S. 25‑9‑315and is also attachment of a security interest in a supporting obligation forthe collateral.
(g) Lien securing rightto payment. The attachment of a security interest in a right to payment orperformance secured by a security interest or other lien on personal or realproperty is also attachment of a security interest in the security interest,mortgage, or other lien.
(h) Securityentitlement carried in securities account. The attachment of a securityinterest in a securities account is also attachment of a security interest inthe security entitlements carried in the securities account.
(i) Commoditycontracts carried in commodity account. The attachment of a security interestin a commodity account is also attachment of a security interest in thecommodity contracts carried in the commodity account. (1997‑181, s. 5; 2000‑169,s. 1; 2006‑112, s. 45.)
