deposit account control agreement
- deposit account control agreement
-
deposit account control agreement (DACA)
USA
The agreement in which a debtor, secured party, and bank maintaining the deposit account have agreed 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 (UCC §9-104). 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 (collateral documents) entered into by a debtor to secure obligations under a loan agreement.
For further information, see Practice Note, UCC: Creation, Perfection and Priority of Security Interests (www.practicallaw.com/6-381-0551) and Practice Note, Security Interests in Deposit Accounts (www.practicallaw.com/8-382-8183).
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
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