2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 92 - Effectiveness of Security Agreement, Attachment of Security Interest and Rights of Parties to Security Agreement
Section 9203 - Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites

     § 9203.  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 all of the following apply:
            (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.
            (3)  One of the following conditions is met:
                (i)  The debtor has authenticated a security
            agreement which provides a description of the collateral
            and, if the security interest covers timber to be cut, a
            description of the land concerned.
                (ii)  The collateral is not a certificated security
            and is in the possession of the secured party under
            section 9313 (relating to when possession by or delivery
            to secured party perfects security interest without
            filing) pursuant to the debtor's security agreement.
                (iii)  The collateral is a certificated security in
            registered form, and the security certificate has been
            delivered to the secured party under section 8301
            (relating to delivery) pursuant to the debtor's security
            agreement.
                (iv)  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 7106 (relating to control of
            electronic document of title), 9104 (relating to control
            of deposit account), 9105 (relating to control of
            electronic chattel paper), 9106 (relating to control of
            investment property) or 9107 (relating to control of
            letter-of-credit right) pursuant to the debtor's security
            agreement.
        (c)  Other Title 13 provisions.--Subsection (b) is subject to
     sections 4210 (relating to security interest of collecting bank
     in items, accompanying documents and proceeds), 5118 (relating
     to security interest of issuer or nominated person), 9110
     (relating to security interests arising under Division 2 or 2A)
     and 9206 (relating to security interest arising in purchase or
     delivery of financial asset).
        (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 division 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 9315 (relating to secured
     party's rights on disposition of collateral and in proceeds) 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.
     (Apr. 16, 2008, P.L.57, No.13, eff. 60 days)

        2008 Amendment.  Act 13 amended subsec. (b)(3)(iv).
        Cross References.  Section 9203 is referred to in sections
     4210, 5118, 9102, 9109, 9110, 9317, 9508, 9703, 9704, 9709 of
     this title.