Section 28:9-203 - Attachment and enforceability of security interest; proceeds; formal requisites

Attachment and enforceability of security interest; proceeds; formal requisites

(1) Subject to the provisions of § 28:4-210 on the security interest of a collecting bank, §§ 28:9-115 and 28:9-116 on security interests in investment properties, and § 28:9-113 on a security interest arising under the article on sales, a security interest is not enforceable against the debtor or third parties with respect to the collateral and does not attach unless:

(a) the collateral is in the possession of the secured party pursuant to agreement, the collateral is investment property and the secured party has control pursuant to agreement or the debtor has signed a security agreement that contains a description of the collateral and in addition, when the security interest covers crops growing or to be grown or timber to be cut, a description of the land concerned;

(b) value has been given; and

(c) the debtor has rights in the collateral.

(2) A security interest attaches when it becomes enforceable against the debtor with respect to the collateral. Attachment occurs as soon as all of the events specified in subsection (1) have taken place unless explicit agreement postpones the time of attaching.

(3) Unless otherwise agreed, a security agreement gives the secured party the rights to proceeds provided by section 28:9-306.

(4) A transaction, although subject to this article, is also subject to subpart B of subchapter IV of Chapter 28 of Title 47, relating to pawnbrokers; Chapter 9 of Title 26, relating to money lenders; Chapter 38 of Title 28 relating to consumer credit sales and direct installment loans; Chapter 12 of Title 50, relating to liens on motor vehicles; and Chapter 6 of Title 50, relating to installment sales of motor vehicles; and in the case of conflict between the provisions of this article and any such statute, the provisions of such statute control. Failure to comply with any applicable statute has only the effect which is specified therein.

CREDIT(S)

(Dec. 30, 1963, 77 Stat. 751, Pub. L. 88-243, § 1; Mar. 16, 1982, D.C. Law 4-85, § 16, 29 DCR 309; Mar. 16, 1993, D.C. Law 9-196, § 5(c), 39 DCR 9165; Apr. 9, 1997, D.C. Law 11-240, § 3(j), 44 DCR 1087; Apr. 9, 1997, D.C. Law 11-255, § 27(ccc), 44 DCR 1271; Mar. 24, 1998, D.C. Law 12-81, § 16(b), 45 DCR 745.)

HISTORICAL AND STATUTORY NOTES

Prior Codifications
1981 Ed., § 28:9-203.
1973 Ed., § 28:9-203.
Legislative History of Laws
For legislative history of D.C. Law 4-85, see Historical and Statutory Notes following § 28:9-102.
For legislative history of D.C. Law 9-196, see Historical and Statutory Notes following § 28:9-103.
Law 11-240, the “Uniform Commercial Code Investment Securities Revision Act of 1996,” was introduced in Council and assigned Bill No. 11-576, which was referred to the Committee on Consumer and Regulatory Affairs. The Bill was adopted on first and second readings on November 7, 1996, and December 3, 1996, respectively. Signed by the Mayor on December 24, 1996, it was assigned Act No. 11-500 and transmitted to both Houses of Congress for its review. D.C. Law 11-240 became effective April 9, 1997.
Law 11-255, the “Second Technical Amendments Act of 1996,” was introduced in Council and assigned Bill No. 11-905, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on November 7, 1996, and December 3, 1996, respectively. Signed by the Mayor on December 24, 1996, it was assigned Act No. 11-519 and transmitted to both Houses of Congress for its review. D.C. Law 11-255 became effective April 9, 1997.
For legislative history of D.C. Law 12-81, see Historical and Statutory Notes following § 28:2-209.
For Law 13-201, see notes following § 28:9-101.

Current through September 13, 2012