§ 10:9-203 — Attachment and enforceability of security interest; proceeds; supporting obligations;

§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) of
this Section, 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 signed a security agreement that provides a description of the
collateral and, if the security interest covers a life insurance policy, the condition specified
in R.S. 10:9-107.1(b) is met, 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 R.S. 10:9-313 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 R.S. 10:8-301 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, letter-of-credit rights, or a life insurance policy, and the secured party has control
under R.S. 10:7-106, 9-104, 9-106, 9-107, 9-107.1, or 9-107.3 pursuant to the debtor's
security agreement; or
(E) the collateral is chattel paper and the secured party has possession and control
under R.S. 10:9-314.1 pursuant to the debtor's security agreement.
(c) Other provisions of this Title. Subsection (b) is subject to R.S. 10:4-210 on the
security interest of a collecting bank, R.S. 10:5-118 on the security interest of a letter-of-credit issuer or nominated person, and R.S. 10:9-206 on security interests in investment
property.
(d) When 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 Chapter 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 R.S. 10:9-315 and also
includes the rights to 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, mortgage, or lien on personal or
real property also includes the rights to the security interest, mortgage, or 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.

Legislative History

Acts 1988, No. 528, §1, eff. Jan. 1, 1990; Acts 1989, No. 135, §7, eff. Jan. 1, 1990; Acts 1995, No. 884, §3, eff. Jan. 1, 1996; Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2009, No. 207, §5, eff. Jan. 1, 2010; Acts 2024, No. 773, §1.