Section 45.29.104. 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 deposit 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 (a) of this section has control even if the debtor retains the right to direct the disposition of funds from the deposit account.

Authorities

45.29.203;45.29.207;45.29.208;45.29.314;45.29.327;45.29.340;45.29.342;45.29.601;45.29.607

Notes

References

AS 45.29.203 Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites.
AS 45.29.207 Rights and duties of secured party having possession or control of collateral.
AS 45.29.208 Additional duties of secured party having control of collateral.
AS 45.29.314 Perfection by control.
AS 45.29.327 Priority of security interests in deposit account.
AS 45.29.340 Effectiveness of right of recoupment or setoff against deposit account.
AS 45.29.342 Bank's right to refuse to enter into or disclose existence of control agreement.
AS 45.29.601 Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes.
AS 45.29.607 Collection and enforcement by secured party.

History

(Sec. 1 ch 113 SLA 2000)