For a security interest to be enforceable against the debtor, which of the following is NOT a requirement?

For a security interest to be enforceable against the debtor, it is essential to understand the fundamental requirements that must be met. The correct answer indicates that the collateral does not need to be stored at the secured party’s location for the security interest to be enforceable.

The enforceability of a security interest hinges on three key factors: the existence of a security agreement, the provision of value by the debtor, and the debtor having rights in the collateral. A security agreement serves as a written contract that clearly outlines the terms and conditions of the security interest. Additionally, for the interest to be valid, the debtor must have already given value, which is often a loan or credit that secures the interest. Furthermore, the debtor must have some rights in the collateral, meaning they possess the legal ability to grant a security interest in the asset.

While physical possession of the collateral can help establish control under certain types of security interests (like pledges), it is not a universal requirement. The law allows for a security interest to be enforceable even when the collateral remains in the debtor's possession or is located elsewhere, as long as the other conditions of having a security agreement, providing value, and granting rights in the collateral are satisfied. Thus, the requirement regarding