North Dakota Code 41-09-04 – (9-104) Control of deposit account or uncertificated certificate of deposit
1. A secured party has control of a deposit account or uncertificated certificate of deposit if:
Terms Used In North Dakota Code 41-09-04
- Debtor: means a natural person whose name was provided in a financing statement record as an individual debtor or one of the types of persons listed in section 41-09-76. See North Dakota Code 41-10-01
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
a. The secured party is the bank with which the deposit account or uncertificated certificate of deposit 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 or uncertificated certificate of deposit without further consent by the debtor; c. The secured party becomes the bank’s customer with respect to the deposit account or uncertificated certificate of deposit; 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. 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 or uncertificated certificate of deposit.