2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter II - Effectiveness and Attachment; Rights and Obligations (§§ 2231 — 2240) › § 2233 - Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites

(a) Attachment.— 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) Enforceability.— 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 of the following conditions is met:
(A) The debtor has authenticated a security agreement that provides a description of the collateral and, (i) if the security interest covers a life insurance policy, the condition specified in subsection (b) of § 2217a of this title has been met, and (ii) 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 § 2263 of this title 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 § 1801 of this title pursuant to the debtor's security agreement, or
(D) the collateral is deposit accounts, electronic chattel paper, investment property, or letter-of-credit rights, or a life insurance policy, and the secured party has control under § 2214, 2215, 2216, 2217 or 2217a of this title pursuant to the debtor's security agreement.
(c) Other UCC provisions.— Subsection (b) of this section is subject to § 860 of this title on the security interest of a collecting bank, § 1237 of this title on the security interest of a letter-of-credit issuer or nominated person, and § 2236 of this title on security interests in investment property.
(d) When person becomes bound by another person's security agreement.— 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) Effect of new debtor becoming bound.— 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) Proceeds and supporting obligations.— The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by § 2266 of this title and is also attachment of a security interest in a supporting obligation for the collateral.
(g) Lien securing right to payment.— 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) Security entitlement carried in securities account.— 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) Commodity contracts carried in commodity account.— 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.
—Sept. 19, 1996, No. 241, added as § 9–203 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
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