9104
Effective Jan 1, 2024Amended by Stats. 2023, Ch. 210, Sec. 25. (SB 95) Effective January 1, 2024.
(a) A secured party has control of a deposit account if any of the following conditions is satisfied:
- (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.
(4) Another person, other than the debtor, satisfies either of the following conditions:
- (A) The person has control of the deposit account and acknowledges that it has control on behalf of the secured party.
- (B) The person 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) A secured party that has satisfied subdivision (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.