(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) to (i) of this section, a security interest is enforceable against the debtor and third parties with respect to the collateral only if:
Value has been given;
The debtor has rights in the collateral or the power to transfer rights in the collateralto a secured party; and
One of the following conditions is met:
The debtor has authenticated a security agreement that provides a description of thecollateral and, if the security interest covers timber to be cut, a description of the land concerned;
The collateral is not a certificated security and is in the possession of the securedparty under section 4-9-313 pursuant to the debtor's security agreement;
The collateral is a certificated security in registered form and the security certificatehas been delivered to the secured party under section 4-8-301 pursuant to the debtor's security agreement; or
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 47-106, 4-9-104, 4-9-105, 4-9-106, or 4-9-107 pursuant to the debtor's security agreement.
Subsection (b) of this section is subject to section 4-4-210 on the security interest of acollecting bank, section 4-5-117.5 on the security interest of a letter-of-credit issuer or nominated person, section 4-9-110 on a security interest arising under article 2 or 2.5 of this title, and section 4-9-206 on security interests in investment property.
A person becomes bound as debtor by a security agreement entered into by anotherperson if, by operation of law other than this article or by contract:
The security agreement becomes effective to create a security interest in the person'sproperty; or
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:
The agreement satisfies paragraph (3) of subsection (b) of this section with respect toexisting or after-acquired property of the new debtor to the extent the property is described in the agreement; and
Another agreement is not necessary to make a security interest in the property enforceable.
The attachment of a security interest in collateral gives the secured party the rights toproceeds provided by section 4-9-315 and is also attachment of a security interest in a supporting obligation for the collateral.
The attachment of a security interest in a right to payment or performance secured bya 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.
The attachment of a security interest in a securities account is also attachment of asecurity interest in the security entitlements carried in the securities account.
The attachment of a security interest in a commodity account is also attachment of asecurity interest in the commodity contracts carried in the commodity account.
No security interest in consumer goods owned by a married person and used primarily for personal, family, or household purposes, other than property referred to in section 4-9-311 and other than any purchase money security interest, shall be enforceable unless the security agreement describing the collateral in accordance with section 4-9-108 is authenticated by both husband and wife if they are residing together at the time the security interest is created.
Source: L. 2001: Entire article R&RE, p. 1334, § 1, effective July 1. L. 2006: (b)(3)(D) amended, p. 500, § 34, effective September 1.
Editor's note: (1) The provisions of this section are similar to provisions of several former sections as they existed prior to 2001. For a detailed comparison, see the comparative tables located in the back of the index.
(2) Colorado legislative change: Colorado added a new subsection (j).