§490:9-203  Attachment and enforceability of
security interest; proceeds; supporting obligations; formal requisites.  (a) 
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 attachment.



(b)  Except as otherwise provided in
subsections (c) through (i), a security interest is enforceable against the
debtor and third parties with respect to the collateral only if:



(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 concerned;



(B)  The collateral is not a certificated
security and is in the possession of the secured party under section 490:9-313
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 section 490:8-301 pursuant to the debtor's security
agreement; or



(D)  The collateral is deposit accounts,
electronic chattel paper, investment property, or letter-of-credit rights, or
electronic documents, and the secured party has control under section
490:7-106, 490:9-104, 490:9-105, 490:9-106, or 490:9-107 pursuant to the
debtor's security agreement.



(c)  Subsection (b) is subject to section
490:4-210 on the security interest of a collecting bank, section 490:5-118 on
the security interest of a letter-of-credit issuer or nominated person, section
490:9-110 on a security interest arising under article 2 or 2A, and section
490:9-206 on security interests in investment property.



(d)  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)  If a new debtor becomes bound as debtor by
a security agreement entered into by another person:



(1)  The agreement satisfies subsection (b)(3) 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)  The attachment of a security interest in
collateral gives the secured party the rights to proceeds provided by section
490:9-315 and is also attachment of a security interest in a supporting
obligation for the collateral.



(g)  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)  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)  The attachment of a security interest in a
commodity account is also attachment of a security interest in the commodity
contracts carried in the commodity account. [L 2000, c 241, pt of §1; am L
2004, c 163, §22]