What is the primary essence of a security agreement related to UCC Article 9?

The primary essence of a security agreement under UCC Article 9 is that it must detail the collateral involved. This means that the agreement must clearly identify the specific assets that are being secured by the loan or obligation. This clarity enables both the debtor and creditor to understand exactly which property is at risk in the event of default. The description of the collateral is essential because it establishes the rights of the secured party over the debtor's property and is necessary in order for the security interest to be enforceable against third parties.

While other factors, such as payment terms and whether the agreement needs to be notarized, may have significance in different contexts, they are not the core requirement of a security agreement under Article 9. Filing with the county clerk may relate to perfection of the security interest but is not a prerequisite for the validity of the security agreement itself. In contrast, the detailed identification of collateral is fundamentally crucial to the agreement’s purpose and function.