Explain the difference between attachment and perfection

Answer 1

Attachment means that the secured party has taken all of the following steps to create and enforceable security interest: (1 ) the secured party and the debtor make a security agreement and either the debtor has authenticated a security agreement describing the collateral or the secured party has obtained possession or control of the collateral; (2 ) the secured party has given value to obtain the security agreement; and (3 ) the debtor has rights in the collateral. Perfection of a security interest protects the secured party against parties other than the debtor. Perfection means letting the rest of the world know that the secured party claims a security interest in the debtor's collateral promised under the attachment. There are several kinds of perfection: perfection by filing, perfection by possession, perfection of consumer goods, and perfection of movable collateral and fixtures. The most common way to perfect is by filing a financing statement with the appropriate state agency. A valid security interest can be created even though the interest is never perfected.