Arizona Laws 47-9203. Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites
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.
Terms Used In Arizona Laws 47-9203
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Bank: means an organization that is engaged in the business of banking. See Arizona Laws 47-9102
- Chattel paper: means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods or a lease of specific goods and license of software used in the goods. See Arizona Laws 47-9102
- Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
- Commodity account: means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer. See Arizona Laws 47-9102
- Contract: A legal written agreement that becomes binding when signed.
- Debtor: means :
(a) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(b) A seller of accounts, chattel paper, payment intangibles or promissory notes; or
(c) A consignee. See Arizona Laws 47-9102
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Investment property: means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract or commodity account. See Arizona Laws 47-9102
- Lien: A claim against real or personal property in satisfaction of a debt.
- New debtor: means a person that becomes bound as debtor under section 47-9203, subsection D by a security agreement previously entered into by another person. See Arizona Laws 47-9102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Property: includes both real and personal property. See Arizona Laws 1-215
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Secured party: means :
(a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(b) A person that holds an agricultural lien;
(c) A consignor;
(d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;
(e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See Arizona Laws 47-9102
- Security agreement: means an agreement that creates or provides for a security interest. See Arizona Laws 47-9102
- Supporting obligation: means a letter-of-credit right or secondary obligation that supports the payment or performance of an account, chattel paper, a document, a general intangible, an instrument or investment property. See Arizona Laws 47-9102
B. Except as otherwise provided in subsections C through I of this section, a security interest is enforceable against the debtor and third parties with respect to the collateral only if:
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; and
3. One of the following conditions is met:
(a) The debtor has authenticated a security agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned;
(b) The collateral is not a certificated security and is in the possession of the secured party under section 47-9313 pursuant to the debtor’s security agreement;
(c) The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under section 47-8301 pursuant to the debtor’s security agreement; or
(d) 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 47-7106, 47-9104, 47-9105, 47-9106 or 47-9107 pursuant to the debtor’s security agreement.
C. Subsection B of this section is subject to section 47-4210 on the security interest of a collecting bank, section 47-5118 on the security interest of a letter-of-credit issuer or nominated person, section 47-9110 on a security interest arising under chapter 2 or 2A of this title, and section 47-9206 on security interests in investment property.
D. A person becomes bound as debtor by a security agreement entered into by another person if, by operation of law other than this chapter 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. If a new debtor becomes bound as debtor by a security agreement entered into by another person:
1. The agreement satisfies subsection B, paragraph 3 of this section 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. The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by section 47-9315 and is also attachment of a security interest in a supporting obligation for the collateral.
G. 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. 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. 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.