- (a) 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) 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.
Source: SL 2000, ch 231 ; SL 2024, ch 198 , § 44.