Pennsylvania § 9104 Control of deposit account

Pennsylvania Statutes

§ 9104 — Control of deposit account

Pennsylvania·Title 13 COMMERCIAL CODE·Ch. 91 GENERAL PROVISIONS·Subch. SHORT TITLE, DEFINITIONS AND GENERAL CONCEPTS

(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:

(i)has control of the deposit account and acknowledges that it has control on behalf of the secured party; or

(ii)obtains control of the deposit account after having acknowledged that it will obtain control of the deposit account on behalf of the secur

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(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:

(i) has control of the deposit account and acknowledges that it has control on behalf of the secured party; or

(ii) 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.

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Legislative History

(July 1, 2024, P.L.450, No.41, eff. 60 days) 2024 Amendment.Act 41 amended subsec. (a). See section 1 of Act 41 in the appendix to this title for special provisions relating to findings and declarations. Cross References.Section 9104 is referred to in sections 9203, 9207, 9208, 9314, 9327, 9340, 9342, 9601, 9607 of this title.