§ 10:9-104 — Control of deposit account

§9-104. Control of deposit account
(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

Acts 1988, No. 528, §1, eff. Jan. 1, 1990; Acts 1989, No. 135, §7, eff. Jan. 1, 1990; Acts 1989, No. 598, §2, eff. Jan. 1, 1990; Acts 1990, No. 1041, §2, eff. Dec. 1, 1990; Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 1991, No. 377, §4, eff. Jan. 1, 1992; Acts 1995, No. 1201, §3, eff. June 29, 1995; Acts 1999, No. 171, §3, eff. Jan. 1, 2000; Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2024, No. 773, §1.