Priority of Security Interests in Deposit Account

  1. Law
  2. Tennessee Code
  3. Commercial Instruments and Transactions
  4. Secured Transactions
  5. Perfection and Priority
  6. Priority of Security Interests in Deposit Account

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The following rules govern priority among conflicting security interests in the same deposit account:

  1. A security interest held by a secured party having control of the deposit account under § 47-9-104 has priority over a conflicting security interest held by a secured party that does not have control.
  2. Except as otherwise provided in paragraphs (3) and (4), security interests perfected by control under § 47-9-314 rank according to priority in time of obtaining control.
  3. Except as otherwise provided in paragraph (4), a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.
  4. A security interest perfected by control under § 47-9-104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.


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