2011 ORS § 79.0203¹
UCC 9-203. Attachment and enforceability of security interest
  • proceeds
  • supporting obligations
  • formal requisites

(1) 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.

(2) Except as otherwise provided in subsections (3) to (9) of this section, a security interest is enforceable against the debtor and third parties with respect to the collateral only if:

(a) Value has been given;

(b) The debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and

(c) 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 ORS 79.0313 (UCC 9-313. When possession by or delivery to secured party perfects security interest without filing) pursuant to the debtors security agreement;

(C) The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under ORS 78.3010 (Delivery) pursuant to the debtors 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 ORS 77.1060 (Control of electronic document of title), 79.0104 (UCC 9-104. Control of deposit account), 79.0105 (UCC 9-105. Control of electronic chattel paper), 79.0106 (UCC 9-106. Control of investment property) or 79.0107 (UCC 9-107. Control of letter-of-credit right) pursuant to the debtors security agreement.

(3) Subsection (2) of this section is subject to ORS 74.2100 (Security interest of collecting bank in items) on the security interest of a collecting bank, ORS 75.1180 (Security interest of issuer or nominated person) on the security interest of a letter-of-credit issuer or nominated person, ORS 79.0110 (UCC 9-110. Security interests arising under ORS chapter 72 or 72A) on a security interest arising under ORS chapter 72 or 72A and ORS 79.0206 (UCC 9-206. Security interest arising in purchase or delivery of financial asset) on security interests in investment property.

(4) 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:

(a) The security agreement becomes effective to create a security interest in the persons property; or

(b) 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.

(5) If a new debtor becomes bound as debtor by a security agreement entered into by another person:

(a) The agreement satisfies subsection (2)(c) 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

(b) Another agreement is not necessary to make a security interest in the property enforceable.

(6) The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by ORS 79.0315 (UCC 9-315. Secured partys rights on disposition of collateral and in proceeds) and is also attachment of a security interest in a supporting obligation for the collateral.

(7) 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.

(8) 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.

(9) 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. [2001 c.445 §13; 2009 c.181 §92]