What is a requirement for a security agreement to be valid?

A security agreement must be authenticated by the debtor to be considered valid. This requirement ensures that the debtor has consented to the agreement and acknowledges the secured party’s rights to the collateral. Authentication can be achieved through the debtor's signature or any other indication of the debtor's intent to authenticate the document. This is a critical aspect because it protects both the debtor and the secured party, confirming the debtor's agreement to the terms of the security interest.

Other options do not reflect the requirements of a valid security agreement. While verbal agreements can sometimes be enforceable in other contexts, they are not sufficient for a security agreement under the Uniform Commercial Code (UCC), which requires a written document that is authenticated. The presence of a witness signature is not a standard requirement in the context of security agreements governed by the UCC. Lastly, while certain language or terms may be helpful in clarifying the agreement's intent, there are no specific "magic" words mandated by the statute for a security agreement to be valid. The key focus remains on the authentication by the debtor.