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<section article="gcl" article_name="Commercial Law" number="9-203" title_number="9" title_name="Secured Transactions" subtitle_number="2" subtitle_name="Effectiveness of Security Agreement; Attachment of Security Agreement; Rights of Parties to Security Agreement">
  <level label="a">
    <text>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.</text>
  </level>
  <level label="b">
    <text>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:</text>
    <level label="1">
      <text>Value has been given;</text>
    </level>
    <level label="2">
      <text>The debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and</text>
    </level>
    <level label="3">
      <text>One of the following conditions is met:</text>
      <level label="A">
        <text>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;</text>
      </level>
      <level label="B">
        <text>The collateral is not a certificated security and is in the possession of the secured party under § 9-313 pursuant to the debtor’s security agreement;</text>
      </level>
      <level label="C">
        <text>The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under § 8-301 of this article pursuant to the debtor’s security agreement; or</text>
      </level>
      <level label="D">
        <text>The collateral is deposit accounts, electronic chattel paper, investment property, letter-of-credit rights, or electronic documents, and the secured party has control under § 7-106, § 9-104, § 9-105, § 9-106, or § 9-107 pursuant to the debtor’s security agreement.</text>
      </level>
    </level>
  </level>
  <level label="c">
    <text>Subsection (b) is subject to § 4-210 of this article on the security interest of a collecting bank, § 5-118 of this article on the security interest of a letter-of-credit issuer or nominated person, § 9-110 on a security interest arising under Title 2 or Title 2A of this article, and § 9-206 on security interests in investment property.</text>
  </level>
  <level label="d">
    <text>A person becomes bound as debtor by a security agreement entered into by another person if, by operation of law other than this title or by contract:</text>
    <level label="1">
      <text>The security agreement becomes effective to create a security interest in the person’s property; or</text>
    </level>
    <level label="2">
      <text>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.</text>
    </level>
  </level>
  <level label="e">
    <text>If a new debtor becomes bound as debtor by a security agreement entered into by another person:</text>
    <level label="1">
      <text>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</text>
    </level>
    <level label="2">
      <text>Another agreement is not necessary to make a security interest in the property enforceable.</text>
    </level>
  </level>
  <level label="f">
    <text>The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by § 9-315 and is also attachment of a security interest in a supporting obligation for the collateral.</text>
  </level>
  <level label="g">
    <text>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.</text>
  </level>
  <level label="h">
    <text>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.</text>
  </level>
  <level label="i">
    <text>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.</text>
  </level>
</section>
