Georgia Secured Transactions Practice Test

A security agreement must be authenticated to be enforceable under secured transactions laws. For this agreement to be considered authenticated, it generally requires that it is either written or electronically stored, which provides a tangible or digital record of the agreement between the parties involved. This ensures clarity regarding the terms and conditions of the security interest and facilitates its enforcement.

A simple verbal agreement does not meet this standard because it lacks the necessary documentation to establish a security interest legally. Similarly, relying solely on physical possession of the collateral does not constitute an authenticated security agreement; possession is a different aspect of secured transactions but does not satisfy the requirement of a formal agreement between the parties. Lastly, while notarization might enhance the credibility of a document, it is not a fundamental requirement for a security agreement to be considered authenticated; thus, it is not essential for the validity of the agreement itself.

In summary, for a security agreement to be properly authenticated, it must be in writing or stored electronically, which aligns with the requirements outlined in the Uniform Commercial Code (UCC) and Georgia law regarding secured transactions.