Effective - 01 Jul 2001
400.9-104. Control of deposit account. — (a) 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 account without further consent by the debtor; or
(3) The secured party becomes the bank's customer with respect to the deposit account.
(b) 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.
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(L. 1963 p. 503 § 9-104, A.L. 1988 S.B. 583, A.L. 1997 S.B. 6, A.L. 2001 S.B. 288)
Effective 7-01-01
(1980) Statute excluding bank deposits from secured transactions provision of the Uniform Commercial Code does not apply to bank deposits which are proceeds of collateral. Morris Plan Co. v. Broadway National Bank of Kansas City (A.), 598 S.W.2d 557.
(1980) Bank's right to setoff as general creditor under statute excluding right to setoff from secured transactions provisions of the Uniform Commercial Code does not mean that general creditors may abrogate perfected security interest simply by having right to and opportunity for setoff. Morris Plan Co. v. Broadway National Bank of Kansas City (A.), 598 S.W.2d 557.