Which of the following is true about attachment and perfection of security interests?

Question

Quizplus · Accepted Answer

A security interest may attach before or after it is perfected. Attachment refers to the creation of a security interest in the collateral, while perfection refers to the process of making the security interest enforceable against third parties. While perfection is important to protect the secured party's interest against competing claims, attachment is what creates the secured party's rights in the first place. Therefore, a security interest may be enforced by the creditor even if it has not been perfected, so long as it has attached.

Which of the Following Is True About Attachment and Perfection