California Commercial Code 9104 – (a) A secured party has control of a deposit account if any of …
(a) A secured party has control of a deposit account if any of the following conditions is satisfied:
(1) The secured party is the bank with which the deposit account is maintained.
Terms Used In California Commercial Code 9104
- Bank: means a person engaged in the business of banking, and includes a savings bank, savings and loan association, credit union, and trust company. See California Commercial Code 1201
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See California Commercial Code 1201
- Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See California Commercial Code 1201
- Right: includes remedy. See California Commercial Code 1201
(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.
(4) Another person, other than the debtor, satisfies either of the following conditions:
(A) The person has control of the deposit account and acknowledges that it has control on behalf of the secured party.
(B) The person 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 subdivision (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.
(Amended by Stats. 2023, Ch. 210, Sec. 25. (SB 95) Effective January 1, 2024.)