Idaho State Statutes - Idaho Attorney Directory

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.
(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 (1) 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 28-9-313 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 28-8-301 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 28-7-106,
28-9-104, 28-9-105, 28-9-106 or 28-9-107 pursuant to the debtor's
security agreement.
(c) Subsection (b) of this section is subject to section 28-4-210 on the
security interest of a collecting bank, section 28-5-120 on the security
interest of a letter of credit issuer or nominated person, section 28-9-110
on a security interest arising under chapter 2 or 12, title 28, and section
28-9-206 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)(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 28-9-315 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.

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