A security interest is attached on creation of the security instrument and perfected upon either registration or possession by the creditor.

Question

Quizplus · Accepted Answer

A security interest is considered attached when the security agreement is created, establishing the legal right of the creditor over the collateral. Perfection of the security interest, which makes it enforceable against third parties, occurs upon registration of the security interest or when the creditor takes possession of the collateral, depending on the type of collateral and applicable law.

A Security Interest Is Attached on Creation of the Security