The security agreement must be certified by the debtor, i.e. it must bear the debtor`s signature or be marked electronically. It must contain an adequate description of the collateral and use words that indicate the intention to create a security right (the right to demand repayment of the loan by foreclosure of the collateral). For the security agreement to be valid, the borrower must generally have rights to the collateral at the time of performance of the contract. If a borrower pledges a car belonging to a neighbor and the neighbor does not know and approves of that promise, the security agreement is ineffective. However, a security agreement may stipulate that it includes after the acquisition of an asset. .