What is the 'Depository Trust Company - DTC'. The Depository Trust Company (DTC) is one of the world's largest securities depositories. The DTC, which was founded in 1973 and is based in New York City, is organized as a limited purpose trust company and provides safekeeping through electronic recordkeeping of securities balances.
To be prepetition property, the security interest must attach to the property. A security interest attaches to personal property upon satisfaction of three requirements: (1) the parties have an adequate security agreement, (2) the secured party gives value, and (3) the debtor has rights or the power to transfer rights in the personal property.
A security interest can be particularly valuable in bankruptcy because secured creditors will be able to collect their debts before creditors without a security interest. The first step in the perfection of a lien is to cause âattachmentâ of the collateral to occur, which will thereafter allow the creditor to âperfectâ the security interest, which is the ultimate goal in properly securing the collateral.