Which party's rights in collateral are required for a security agreement to attach?

For a security agreement to attach, it is essential that the debtor has rights in the collateral being pledged. This is because, under the Uniform Commercial Code (UCC), the attachment of a security interest requires three elements: (1) the parties must have a security agreement, (2) value must be given by the secured party, and (3) the debtor must have rights in the collateral.

If the debtor does not have rights in the collateral, they cannot grant a security interest to the secured party. In other words, the secured party cannot obtain a valid security interest if the collateral does not belong to the debtor in some capacity. This ensures that the secured party is protected in the event of a default, as they need to have a legitimate claim on the collateral that the debtor owns or has rights to.

In terms of the other parties mentioned, the creditor and the secured party may be intertwined. However, their relationship to the collateral is predicated on the debtor's rights. The attorney, while essential for drafting and ensuring the legality of the agreement, does not have a bearing on the attachment of the security interest concerning the rights in the collateral. Thus, the debtor's rights in the collateral are a fundamental requirement for the security agreement to