24.49.030 Attachment and Enforceability of Security Interest; Proceeds; Formal Requisites

(a) Subject to the provisions of Chapters 24.42 through 24.48 the security interest of a collecting bank, Section 24.43.020 on security interests in securities and Section 24.43.030 on a security interest arising under the article on sales, a security interest is not enforceable against the debtor or third parties with respect to the collateral and does not attach unless:

(1) The collateral is in the possession of the secured party pursuant to agreement, or the debtor has signed a security agreement which contains a description of the collateral and in addition, when the security interest covers crops growing or to be grown or timber to be cut, a description of the land concerned; and

(2) Value has been given; and

(3) The debtor has rights in the collateral.

(b) A security interest attaches when it becomes enforceable against the debtor with respect to the collateral. Attachment occurs as soon as all of the events specified in Subsection (a) have taken place unless explicit agreement postpones the time of attaching.

(c) Unless otherwise agreed a security agreement gives the secured party the rights to proceeds provided by Section 24.50.060.

(d) A transaction, although subject to this article, is also subject to any and all tribal laws regulating small loans, retail installments and the like, and in the case of conflict between the provisions of this article and any such laws, the provisions of said laws control. Failure to comply with any applicable statute has only the effect which is specified therein.