§ 7-9A-104 — Control of Deposit Account

Alabama § 7-9A-104

• Jurisdiction: Alabama
• Title 7: Commercial Code
• Art. 9A: Secured Transactions
• Div. 1: Short Title, Definitions, and General Concepts

Text

(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
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) 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.

Legislative History

(Act 2001-481, p. 647, §1; Act 2023-492, §1.)