Under the Secured Transaction Article of the UCC, which of the following statements is correct regarding security interest that has not attached?
a. It is effective against the debtor, but not against third parties.
b. It is effective against both the debtor and third parties.
c. It is effective against third parties with unsecured claims.
d. It is not effective against either the debtor or third parties.
a. It is effective against the debtor, but not against third parties.
b. It is effective against both the debtor and third parties.
c. It is effective against third parties with unsecured claims.
d. It is not effective against either the debtor or third parties.
Choice "d" is correct.
A security interest is not effective against anyone before it attaches to the collateral. Thus, all of the other answer choices are incorrect.
A security interest is not effective against anyone before it attaches to the collateral. Thus, all of the other answer choices are incorrect.
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