§9-1104. Control of deposit account

246 words·~1 min read·/me/title-11-uniform-commercial-code/9-1104

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

(1). A secured party has control of a deposit account if:

(a). The secured party is the bank with which the deposit account is maintained; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]

(b). 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; [PL 2023, c. 669, Pt. A, §84 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]

(c). The secured party becomes the bank's customer with respect to the deposit account; or [PL 2023, c. 669, Pt. A, §84 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]

(d). Another person, other than the debtor:

(i)Has control of the deposit account and acknowledges that it has control on behalf of the secured party; or

(ii)Obtains control of the deposit account after having acknowledged that it will obtain control of the deposit account on behalf of the secured party. [PL 2023, c. 669, Pt. A, §84 (NEW); PL 2023, c. 669, Pt. E, §1 (AFF).]

[PL 2023, c. 669, Pt. A, §84 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]

(2). A secured party that has satisfied subsection

(1)has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.

[PL 2001, c. 286, §1 (AMD).]