New Jersey § 12a:9-203

§ 12a:9-203.

(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), 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, 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 12A:9-313 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 12A:8-301 pursuant to the

debtor's security agreement; or (D) the collateral is deposit accounts, electronic chattel paper, investment property, letter-of-credit rights, or electronic documents, and the secured party has control under 12A:7-106, 12A:9-104, 12A:9-105, 12A:9-106, or 12A:9-107 pursuant to the debtor's security agreement. (c) Other Uniform Commercial Code provisions. Subsection (b) is subject to 12A:4-210 on the security interest of a collecting

bank, 12A:5-118 on the security interest of a letter-of-credit issuer or nominated

person, 12A:9-110 on a security interest arising under Chapter 2 or 2A, and 12A:9-206

on security interests in investment property. (d) When a 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) 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 12A:9-315 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. (j) Bondable transition property. Bondable transition property is presently existing property for all purposes, including

for purposes of subsection (b) (2), whether or not the revenues and proceeds arising

under the property have accrued and notwithstanding that the value of the property

may depend upon customer use of electricity or performance of service by electric

public utilities, or both.