Legislation

Section 9--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 an

authenticated 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;

* NB Effective until June 3, 2026

* (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;

* NB Effective June 3, 2026

(3) the secured party becomes the bank's customer with respect to

the deposit account;

(4) the name on the deposit account is the name of the secured

party or indicates that the secured party has a security

interest in the deposit account; or

* (5) another person has control of the deposit account on behalf

of the secured party or, having previously acquired control

of the deposit account, acknowledges that it has control on

behalf of the secured party.

* NB Effective until June 3, 2026

* (5) 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.

* NB Effective June 3, 2026

(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.

(c) No implied duties of bank. The authentication of a record by the
bank under subsection (a)(2) does not impose upon the bank any duty not
expressly agreed to by the bank in the record. The naming of the deposit
account in the name of the secured party or with an indication that the
secured party has a security interest in the deposit account under
subsection (a)(4) does not impose upon the bank any duty not expressly
agreed to by the bank.

(d) Conditions not relevant. A secured party has control under
subsection (a)(2) even if any duty of the bank to comply with
instructions originated by the secured party directing disposition of
the funds in the deposit account is subject to any condition or
conditions (other than further consent by the debtor).

(e) No inferences. The procedures and requirements of subsection
(a)(4) available to obtain control shall not be used in interpreting the
sufficiency of a secured party's compliance with the procedures and
requirements of subsection (a)(1), (a)(2) or (a)(3) to obtain control.
The provisions of subsection (a)(4) shall create no inference regarding
the requirements for compliance with subsection (a)(1), (a)(2) or
(a)(3).