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2024 New York Laws
UCC - Uniform Commercial Code
Article 9 - Secured Transactions
Part 1 - General Provisions
Sub Part 1 - Short Title, Definitions, and General Concepts
9-104 - Control of Deposit Account.

Universal Citation:
NY UCC § 9-104 (2024)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.
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Section 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  an

         authenticated   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) the name on the deposit account is the name  of  the  secured

         party  or  indicates  that  the  secured party has a security

         interest in the deposit account; or
       (5) another person has control of the deposit account  on  behalf

         of  the  secured party or, having previously acquired control

         of the deposit account, acknowledges that it has  control  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.
  (c)  No  implied duties of bank. The authentication of a record by the
bank under subsection (a)(2) does not impose upon the bank any duty  not
expressly agreed to by the bank in the record. The naming of the deposit
account  in the name of the secured party or with an indication that the
secured party has a security  interest  in  the  deposit  account  under
subsection  (a)(4)  does not impose upon the bank any duty not expressly
agreed to by the bank.
  (d) Conditions  not  relevant.  A  secured  party  has  control  under
subsection  (a)(2)  even  if  any  duty  of  the  bank  to  comply  with
instructions originated by the secured party  directing  disposition  of
the  funds  in  the  deposit  account  is  subject  to  any condition or
conditions (other than further consent by the debtor).
  (e) No inferences.  The  procedures  and  requirements  of  subsection
(a)(4) available to obtain control shall not be used in interpreting the
sufficiency  of  a  secured  party's  compliance with the procedures and
requirements of subsection (a)(1), (a)(2) or (a)(3) to  obtain  control.
The  provisions of subsection (a)(4) shall create no inference regarding
the requirements  for  compliance  with  subsection  (a)(1),  (a)(2)  or
(a)(3).
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