§ 26-1-9.1-203 — Attachment and enforceability of security interest; requirements; rights to proceeds; security interest in right to payment or performance

Indiana § 26-1-9.1-203

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

(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 (1) of the following conditions is met:
(A) The debtor has signed 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 IC 26-1-9.1-313 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 IC 26-1-8.1-301 pursuant to the debtor's security
agreement.
(D) The collateral is controllable accounts, controllable
electronic records, controllable payment intangibles, deposit
accounts, electronic documents, investment property, or
letter-of-credit rights, and the secured party has control under
IC 26-1-7-106, IC 26-1-9.1-104, IC 26-1-9.1-106, IC 26-1-9.1-107, or IC 26-1-9.1-107.1 pursuant to the debtor's
security agreement.
(E) The collateral is chattel paper and the secured party has
possession and control under IC 26-1-9.1-314.1 pursuant to the
debtor's security agreement.
(c) Subsection (b) is subject to IC 26-1-4-210 on the security
interest of a collecting bank, IC 26-1-5.1-118 on the security interest of
a letter-of-credit issuer or nominated person, IC 26-1-9.1-110 on a
security interest arising under IC 26-1-2 or IC 26-1-2.1, and IC 26-1-9.1-206 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 IC 26-1-9.1 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 IC 26-1-9.1-315 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.

Legislative History

As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.66; P.L.199-2023, SEC.45.