What happens when a security interest is not attached?

When a security interest is not attached, the result is that the debtor retains full ownership of the property. For a security interest to be attached, it must meet certain requirements under the Uniform Commercial Code (UCC), including the necessity of a security agreement, the value given by the creditor, and the debtor's rights in the collateral. If any of these requirements are not satisfied, the creditor does not acquire a security interest in the collateral.

In this situation, because the attachment has not occurred, the creditor lacks any legal rights to the collateral, meaning they cannot claim it or take possession of it. The debtor continues to have full ownership and maintain control over the property without any encumbrance from the creditor.

This understanding reinforces why the other options do not align with the concept of an unattached security interest. A creditor does not have rights to the collateral, cannot immediately possess it, and the failure of attachment does not invalidate the security agreement; it simply means that the rights under that agreement have not been activated.