1997 Minnesota Statutes

     336.9-203 Attachment and enforceability of security 
  interest; proceeds; formal requisites. 

    (1) Subject to the provisions of section 336.4-210 on the 
 security interest of a collecting bank, sections 336.9-115 and 
 336.9-116 on security interests in investment property and 
 section 336.9-113 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: 

    (a) the collateral is in the possession of the secured 
 party pursuant to agreement, the collateral is investment 
 property and the secured party has control 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; 

    (b) value has been given; and 

    (c) the debtor has rights in the collateral. 

    (2) 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 (1) have taken place unless explicit agreement 
 postpones the time of attaching. 

    (3) Unless otherwise agreed a security agreement gives the 
 secured party the rights to proceeds provided by section 
 336.9-306. 

    (4) A transaction, although subject to this article, is 
 also subject to Minnesota Statutes, Sections 48.153 to 48.157; 
 Chapters 52, 53, and 56; and Sections 168.66 to 168.77, 222.13 
 to 222.16, and 334.01 to 334.06, and in the case of conflict 
 between the provisions of this article and any such statute, the 
 provisions of such statute control.  Failure to comply with any 
 applicable statute has only the effect which is specified 
 therein. 

    HIST: 1965 c 811 s 336.9-203; 1976 c 135 s 11; 1978 c 695 s 
 49; 1992 c 565 s 113; 1995 c 194 art 2 s 6