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Attachment and Perfection of Security Interests

By Thomas V. Askounis, Debra Devassy Babu and Allison E. Kahrnoff
September 24, 2013

While most secured parties focus their energies on negotiating and drafting contract documents, they must also pay careful attention to ensure that security interests properly attach and are perfected, as slight errors can have devastating consequences on security interests. Because security agreements and UCC financing statements are routinely prepared as a matter of course, the potential for drafting errors exists. This article addresses common attachment and perfection problems raised in recent cases, and provides suggestions on how secured parties can avoid these pitfalls.

Problem: The Security Interest Fails to Attach, Due to a Typo in the Security Agreement

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