2006 New York Code - Attachment And Enforceability Of Security Interests; Proceeds; Supporting Obligations; Formal Requisites.

 
  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, or  letter-of-credit  rights,
                 and  the  secured party has control under Section 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.