What is account control agreement?

Account Control Agreement means an agreement acceptable to Lender which perfects via control Lender’s security interest in Borrower’s deposit accounts and/or accounts holding securities.

What is the purpose of a deposit account control agreement?

The deposit account control agreement enables the secured party to obtain control over the deposit account, and so enables its security interest in the deposit account to be perfected. It is an example of a collateral document entered into by a debtor to secure obligations under a loan agreement.

What is a DACA control agreement?

A deposit account control agreement (DACA), also called a control agreement, is a tri-party agreement among a deposit customer (the debtor), a deposit customer’s lender (the secured party) and a bank. By executing the initial instruction, the lender converts the deposit account control agreement from passive to active.

What is a lender controlled account?

Controlled Account means each deposit account and securities account that is subject to an account control agreement in form and substance satisfactory to the Administrative Agent and the Issuing Lender. Sample 2. Sample 3. Based on 66 documents. 66.

What is a deposit bank account?

A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Deposit accounts can be savings accounts, current accounts or any of several other types of accounts explained below.

What is a cash management agreement?

Cash Management Agreement means any agreement or arrangement to provide treasury, depository, overdraft, credit or debit card, purchase card, electronic funds transfer (including automated clearing house fund transfer services) and other cash management services.

How does lockbox work in banking?

What is lockbox banking? To do this, the bank sets up a post office box, and you direct your customers to send their payments to the new address. The bank retrieves the payments, keys in the information for the business’ records, and deposits the funds into the business’ account.

What does DACA stand for?

Deferred Action for Childhood Arrivals
Deferred Action for Childhood Arrivals (DACA) is a United States immigration policy that allows some individuals with unlawful presence in the United States after being brought to the country as children to receive a renewable two-year period of deferred action from deportation and become eligible for a work permit in …

Can I open a bank account with DACA?

Can DACA Recipients Open a Bank Account? If you are the recipient of the Deferred Action for Child Arrivals Program (DACA), then you can open a bank account with a Taxpayer Identification number along with proof of address and other forms of identification.

What does it mean to perfect a security interest?

A perfected security interest is any secure interest in an asset that cannot be claimed by any other party. The interest is perfected by registering it with the appropriate statutory authority, so that it is made legally enforceable and any subsequent claim on that asset is given a junior status.

Is a deposit account the same as a savings account?

A savings account is a deposit account for regular savings. The interest rate is always guaranteed up to the nearest Date of saving. A term deposit is a deposit account used to valorise financial funds. The bank will open a saving account in the agreed currency and for the agreed period according to the contract.

What are the three types of bank deposits?

Traditionally, there are four types of bank deposits in India, which are – Current Account, Recurring Deposits, Savings Accounts, and Fixed Deposit Accounts.

How does a Deposit Account Control Agreement work?

Such an agreement gives the lender “control” of the deposit account that is required for perfection under the UCC. There are two principal forms of DACAs, either of which is sufficient for purposes of control and perfection under the UCC.

Can a UCC-1 financing statement perfect a deposit account?

The Uniform Commercial Code (UCC) defines a deposit account as a demand, time, savings, passbook, or similar account maintained with a bank. This excludes investment property or accounts that are represented by an instrument. Unlike with most types of collateral, filing a UCC-1 financing statement does not perfect a lien on a deposit account.

When does a secured party have control of a deposit account?

§ 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;

How does a blocked control agreement work for DACA?

In a “blocked” control agreement, the DACA provides that the borrower will have no access to the funds in the deposit account (s) and that the lender will have complete control over the funds.