Section 9--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 attachment.

(b) Enforceability. 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 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 8--301 pursuant to the

debtor's security agreement; or

(D) the collateral is deposit accounts, electronic chattel

paper, investment property, letter-of-credit rights, or

electronic documents, and the secured party has control

under Section 7--106, 9--104, 9--105, 9--106, or 9--107

pursuant to the debtor's security agreement.

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

(d) When a 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 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) Proceeds and supporting obligations. The attachment of a security
interest in collateral gives the secured party the rights to proceeds
provided by Section 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 contracts carried in the commodity
account.