Which statement best differentiates attachment from perfection under Article 9 of the UCC?

Which statement best differentiates attachment from perfection under Article 9 of the UCC?

• A. Attachment makes the security interest enforceable against the debtor; perfection gives public notice and priority against third parties.
• B. Attachment creates priority against third parties; perfection makes the agreement legally binding with the debtor.
• C. Attachment is optional; perfection is required for any security interest.
• D. Attachment and perfection are the same concept.

Answer: (A)

Two-stage structure of a secured interest under Article 9: first, attachment, which makes the security interest enforceable against the debtor; second, perfection, which gives public notice and priority against third parties. Attachment occurs when value is given, the debtor has rights in the collateral, and there is a security agreement describing the collateral. Once attached, the secured party can enforce against the debtor if they default. Perfection, on the other hand, is about establishing priority and visibility to others: it is achieved by filing a financing statement, taking possession, or obtaining control (depending on the collateral). Perfection provides a public record so other creditors or buyers know of the security interest and can determine who has priority. Therefore, the best differentiator is that attachment binds the debtor, while perfection protects against third-party claims by giving public notice and priority.

Two-stage structure of a secured interest under Article 9: first, attachment, which makes the security interest enforceable against the debtor; second, perfection, which gives public notice and priority against third parties. Attachment occurs when value is given, the debtor has rights in the collateral, and there is a security agreement describing the collateral. Once attached, the secured party can enforce against the debtor if they default. Perfection, on the other hand, is about establishing priority and visibility to others: it is achieved by filing a financing statement, taking possession, or obtaining control (depending on the collateral). Perfection provides a public record so other creditors or buyers know of the security interest and can determine who has priority. Therefore, the best differentiator is that attachment binds the debtor, while perfection protects against third-party claims by giving public notice and priority.