CODE OF VIRGINIA

CONTROL OF DEPOSIT ACCOUNT (§ 8.9A-104)

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

   4. another person, other than the debtor:

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: 2000, c. 1007; 2024, c. 652.