Under UCC Article 9, what must occur for a transaction to create a security interest?

A transaction must create a security interest through its substance, meaning that the nature of the transaction involves the creation of an obligation secured by collateral. Under UCC Article 9, a security interest typically arises when a secured party loans money or extends credit to a debtor, which is then secured by the debtor's personal property (the collateral). The specific details of the transaction, such as the intent of the parties and the types of collateral involved, determine whether a security interest is established.

For this reason, the substance of the transaction is central to the creation of a security interest under UCC Article 9. While it’s true that most security interest transactions are documented in writing and that various forms of collateral can be involved, the essential requirement is that the transaction's nature reflects an intention to create a security interest. The options concerning the debtor being a corporation and the collateral being real estate are not prerequisites for establishing a security interest under UCC Article 9.