Where the collateral remains in the physical possession of the borrower .
Where the collateral is intangible ( such as a patent. , accounts receivable , or a promissory note ) , the security agreement must be in writing in order to satisfy the statute of frauds .
Where the collateral remains in the physical possession of the borrower , or where the collateral is intangible ( such as a patent. , accounts receivable , or a promissory note ) , the security agreement must be in writing in order to satisfy the statute of frauds .