Which three elements must be present for a security agreement to attach?

For a security agreement to attach, three essential elements must be present: there must be an agreement, the secured party must provide value, and the debtor must have rights in the collateral.

The agreement establishes the legal basis for the security interest, outlining the terms under which the collateral is pledged. The provision of value by the secured party is crucial as it demonstrates that the lender has a legitimate stake in the transaction, reinforcing the security interest's foundation. Lastly, the requirement that the debtor must have rights in the collateral ensures that the debtor has the legal authority to grant a security interest over the asset. Without these elements, the security agreement lacks the necessary framework to be enforceable in the event of default, making option B the correct answer.

In contrast, the other options present elements that are either unnecessary or incorrect regarding the attachment of security interests under the Uniform Commercial Code (UCC). For example, witnessing or notarization is not generally required for a security agreement to be valid; instead, the focus is on the substantive elements outlined in option B.