Section 9--104. Control of Deposit Account  


Latest version.
  • (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; or
             (3) the secured party becomes the bank's customer with respect to
                 the deposit account.
        (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.