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.
The ability to obtain a security interest in the underlying nonassignable right is critical in bankruptcy proceedings because if the secured party has a security interest in the underlying nonassignable right, then the proceeds exception in section 552(b) of the Code would allow the secured party's security interest to attach to the proceeds of a postpetition transfer.