§ 554.9104 — Control of deposit account

Iowa § 554.9104

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. Requirements for control. A secured party has control of a deposit account if:
a. the secured party is the bank with which the deposit account is maintained;
b. 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;
c. the secured party becomes the bank’s customer with respect to the deposit account; or
d. another person, other than the debtor:
(1) has control of the deposit account and acknowledges that it has control on behalf of
the secured party; or
(2) obtains control of the deposit account after having acknowledged that it will obtain
control of the deposit account on behalf of the secured party.
2. Debtor’s right to direct disposition. A secured party that has satisfied subsection 1 has
control, even if the debtor retains the right to direct the disposition of funds from the deposit
account.