Control of deposit account (§ 8.9A-104)

§ 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

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.