§ 8.9A-104 Control of deposit account
a. Requirements for control. A secured party has control of a deposit account if:
1. the secured party is the bank with which the deposit account is maintained;
2. the debtor, secured party, and bank have agreed in a signed record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor;
3. the secured party becomes the bank’s customer with respect to the deposit account; or
A. has control of the deposit account and acknowledges that it has control on behalf of the secured party; or
B. obtains control of the deposit account after having acknowledged that it will obtain control of the deposit account on behalf of the secured party.
b. Debtor’s right to direct disposition. A secured party that has satisfied subsection (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.
History
This law was first created in 2000. The record of its establishment is cataloged in chapter 1007 of that year’s edition of “Acts of Assembly,” the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by “The Acts of Assembly,” a state publication, by year and chapter. Those modifications that can be read on the General Assembly’s website will be linked accordingly. That modification is as follows: in 2024, chapter 652.
2000, c. 1007; 2024, c. 652.