Under the Secured Transactions Article of the UCC, which of the following security agreements does not need to be in writing to be enforceable?
A. A security agreement collateralizing a debt of less than $500.
B. A security agreement where the collateral is highly perishable or subject to wide price fluctuations.
C. A security agreement where the collateral is in the possession of the secured party.
D. A security agreement involving a purchase money security interest.
Answer:C
This answer is correct. Generally, security agreements must be in writing to be enforceable. The primary exception to the writing requirement is if the secured party takes physical possession of the collateral, known as a pledge.