Attachment or Perfection: What Happens First?
Attachment makes the security interest enforceable against the debtor. Perfection strengthens the creditor's position against third parties.
Attachment
Attachment generally requires value, debtor rights in collateral, and an authenticated security agreement or another qualifying basis.
Perfection
Perfection protects the secured party's position against competing claimants under priority rules.
Methods
Common perfection methods include filing, possession, control, and automatic perfection for certain collateral.
Why candidates mix them
A financing statement can be central to perfection but does not replace every attachment requirement.
The takeaway
Attachment creates enforceability against the debtor. Perfection protects against third parties.
Related Summit guides
FAQ
Can filing occur before attachment?
Certain filing steps can occur earlier, but perfection is not complete until attachment and other requirements are satisfied.
Is filing always required?
No.
Does attachment guarantee first priority?
No.