What is required for a description of collateral in a security agreement?

A description of collateral in a security agreement is required to identify the collateral in a reasonably identifiable manner. This means that the collateral must be described with enough detail that it can be distinguished from other property, allowing third parties to understand what specific assets are secured by the security interest.

Reasonably identifying the collateral can be accomplished by using terms that reference the type of collateral, such as "inventory," "equipment," or even a specific item if necessary. The concept of reasonable identification also aligns with UCC guidelines, which emphasize that it is not necessary for the description to be exhaustive or overly detailed.

The other choices do not accurately reflect the requirements: including all assets would be impractical and could encompass items that are not intended to be collateral; being detailed and exhaustive goes beyond what is required; and specifying only current assets disregards the flexibility that allows for future assets to be included in the collateral description under certain types of security agreements. Thus, option C is the most accurate representation of what is legally necessary for a description of collateral in a security agreement.