2892

LAWS OF MARYLAND

Ch. 824

security interest arising under the title on sales, a
security interest is not enforceable 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 interest 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.]

(1)  SUBJECT TO THE PROVISIONS OF § 4-208 ON THE
SECURITY INTEREST OF A COLLECTING BANK AND § 9-113 ON A
SECURITY INTEREST ARISING UNDER THE TITLE 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, 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; AND

(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 §
9-306.

[(2)] (4) A transaction, although subject to this
title, may also be subject to other statutes regulating
loans and retail installment sales, such as Title 12,
Subtitles 2, 3, and 6 of this article and the like, and in
the case of conflict between the provisions of this title
and any such statutes, the provisions of such statute
control. Failure to comply with any applicable statute has
only the effect which is specified therein.

9-204.

[(1) A security interest cannot attach until there is
agreement (subsection (3) of § 1-201) that it attach and
value is given and the debtor has rights in the collateral.