Which of the following is NOT a requirement for attachment?

Attachment of a security interest is a critical concept in secured transactions, and it establishes a creditor's protection over the collateral. To achieve attachment, certain requirements must be met.

The correct choice indicates that the collateral does not need to be physically present for the security interest to attach. What is essential is that the lender provides value, the debtor possesses rights in the collateral, and there is a valid Security Agreement indicating the terms of the security interest. The absence of the physical presence of collateral does not prevent the attachment from occurring; instead, the key factors are the legal agreements and rights involved.

For instance, it is entirely possible for a security interest to attach to goods that are not physically in the creditor's possession, such as when the debtor retains possession of the collateral but a security agreement has been properly executed. This ensures that the lender's rights are protected regardless of whether the collateral is on-site or elsewhere. Thus, the assertion that physical presence is needed is not a mandated requirement for attachment.