J. MILLARD TAWES, Governor                        923

is effective according to its terms between the parties, against pur-
chasers of the collateral and against creditors. Nothing in this
Sub-title validates any charge or practice illegal under any statute
or regulation thereunder governing usury, small loans, retail install-
ment sales, or the like, or extends the application of any such statute
or regulation to any transaction not otherwise subject thereto.

9—202. Title to Collateral Immaterial.

Each provision of this Sub-title with regard to rights, obligations
and remedies applies whether title to collateral is in the secured party
or in the debtor.

9—203. Enforceability of Security Interest; Proceeds, Formal
Requisities.

(1)  Subject to the provisions of Section 4—208 on the security
interest of a collecting bank and Section 9—113 on a security interest
arising under the Sub-title on Sales, a security interest is not enforce-
able against the debtor or third parties unless

(a)  the collateral is in the possession of the secured party; or

(b)  the debtor has signed a security agreement which contains
a description of the collateral and in addition, when the security in-
terest covers crops or oil, gas or minerals to be extracted or timber
to be cut, a description of the land concerned. In describing collateral,
the word "proceeds" is sufficient without further description to cover
proceeds of any character.

(2)  A transaction, although subject to this Sub-title, may also be
subject to other statutes regulating loans and retail installment sales
such as Article 58A, Sections 1 through 23, Small Loan Act, Article
11, Sections 163 through 205, Industrial Finance Companies, Article
83, Sections 128 through 153, Retail Installment Sales, and the like,
and in the case of conflict between the provisions of this Sub-title
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.

9—204. When Security Interest Attaches; After-Acquired Prop-
erty; Future Advances.

(1)  A security interest cannot attach until there is agreement
(subsection (3) of Section 1—201) that it attach and value is given
and the debtor has rights in the collateral. It attaches as soon as all
of the events in the preceding sentence have taken place unless
explicit agreement postpones the time of attaching.

(2)  For the purposes of this section the debtor has no rights

(a)  in crops until they are planted or otherwise become growing
crops, in the young of livestock until they are conceived;

(b)  in fish until caught, in oil, gas or minerals until they are ex-
tracted, in timber until it is cut;

(c)  in a contract right until the contract has been made;

(d)  in an account until it comes into existence.