Sec. 9-104. Control of deposit account.

174 words·~1 min read·/il/chapter-810/act-5/9-104

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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.