§490:9-203 Attachment and enforceability of security interest; proceeds, formal requisites. (1) Subject to the provisions of section 490:4-210 on the security interest of a collecting bank, sections 490:9-115 and 490:9-116 on security interests in investment property, and section 490:9-113 on a security interest arising under the Articles on Sales and Leases, 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, the collateral is investment property, and the secured party has control 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;

(b) Value has been given; and

(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 section 490:9-306.

(4) A transaction, although subject to this Article, is also subject to article 9 of chapter 412 and chapter 476 (credit sales act), and in the case of conflict between the provisions of this Article 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. [L 1965, c 208, §9-203; am L 1966, c 18, §2(b); HRS §490:9-203; am L 1978, c 155, §1(12); am L 1985, c 68, §18; am L 1986, c 341, §4(3); am L 1989, c 266, §5; am L 1993, c 350, §28; am L 1997, c 32, §5 and c 33, §9]