The first step would be to ensure that the security agreement must be authenticated in some manner or must be in writing (Clarkson, Miller & Cross, 2016). However, there must be a clear description of the subject of the collateral in the security agreement so that there can be authentication. The debtor must authenticate or show authentication by providing a valid signature on the security agreement. The second step is to ensure that there is something of value given by the secured party to the debtor. Finally, there must be rights possessed by the debtor in the collateral (Clarkson, Miller & Cross, 2016).