14-9-203. ENFORCEABILITY OF SECURITY INTERESTS; PROCEEDS; FORMAL REQUISITES.

1. Subject to the provisions of any applicable law regulating the security interests of a collecting bank and Section 113 on a security interest arising under the Chapter on Sales a security interest is not enforceable against the debtor or third parties with respect to the collateral and does not attach unless
   1. The collateral is in the possession of the secured party pursuant to an agreement, ore the debtor has signed a security agreement which contains a description of the collateral and in addition, when the security interest covers crops which are either growing or to be grown or timber to be cut, the agreement must contain a description of the land concerned; and
   2. Value has been given; and
   3. The debtor has rights in the collateral.
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 an agreement explicitly postpones the time of attaching.
3. Unless otherwise agreed, a security agreement gives the secured party the rights to proceeds provided by Section 306.
4. A transaction, although subject to this Chapter, is also subject to all applicable consumer finance laws, and in the case of a conflict between the provisions of this Chapter and any such statutes, the provisions of the consumer finance laws control. Failure to comply with any applicable statute has only the effect which is specified in that statute.