§ 34.1-9-203 — 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 (j), a security interest is enforceable against the
debtor and third parties with respect to the collateral only if:
(i) Value has been given;
(ii) The debtor has rights in the collateral or the
power to transfer rights in the collateral to a secured party;
and
(iii) One (1) 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 34.1-9-313 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 34.1-8-301 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 34.1-7-106, 34.1-9-104, 34.1-9-105,
34.1-9-106 or 34.1-9-107 pursuant to the debtor's security
agreement.
(c) Subsection (b) is subject to section 34.1-4-210 on the
security interest of a collecting bank, section 34.1-5-118 on
the security interest of a letter-of-credit issuer or nominated
person, section 34.1-9-110 on a security interest arising under
article 2 or 2A, and section 34.1-9-206 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:
(i) The security agreement becomes effective to
create a security interest in the person's property; or
(ii) 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:
(i) The agreement satisfies paragraph (b)(iii) with
respect to existing or after-acquired property of the new debtor
to the extent the property is described in the agreement; and
(ii) 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 34.1-9-315 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.
(j) 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.