Deposit Account Control Agreement Template

Deposit Accounts with BMO Harris Bank N.A. (as a deposit bank, ”bank”) Figures: (an ”affected account” and together the ”assigned accounts”) The establishment of an account control agreement allows lenders to hone their interest in a debtor account (UCC No. 9-104) and to define the disposition instructions (transfer) to the bank with respect to the controlled account. A deposit account control agreement (DACA), also known as a control agreement, is a tripartite agreement between a deposit client (the debtor), a client`s lender (the guaranteed party) and a bank. The first instruction — An instruction given to the bank comes from the lender, which orders it to stop following the debtor`s instructions. The initial statement often contains a disposition order from the secure part, which allows the insured party to manage the flow of money from the deposit account. Active Deposit Account Control Agreement – A control agreement that orders the bank to accept the instructions of the secured party (not the debtor). Why do lenders use account management agreements? Clients often do not host their deposits with their lenders and some lenders do not offer deposit accounts. Lenders enter into deposit account control agreements such as an additional level of default protection and loan repayment assistance. (”deposit account”) with the bank, pursuant to an agreement between the bank and the customer, after which the customer with the bank is the sum of the disposition instructions – An instruction to the bank that manages the sale of the funds in the account. Regions have a centralized and experienced account control team that can offer a number of benefits to lenders and clients as well as their law firms. Deposit Account Control Agreement (DACA) – A tripartite agreement between a client (debtor), an insured party (lender) and a bank that allows the lender to enhance a security interest in the client`s funds by taking control of the deposit account (UCC No.

9-104). Debtor (client) – As one of the three parts of the DACA, the debtor provides the security and receives the deposits into the deposit account. UCC No. 9-104 — The ”Single Code of Trade” section that deals with deposit account control. This section enhances the security interests on deposit accounts as an original guarantee.