1. Requirements for control. A secured party has control of a deposit account if: a. the secured party is the bank with which the deposit account is maintained; b. the debtor, secured party, and bank have agreed in a signed 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; c. the secured party becomes the bank’s customer with respect to the deposit account; or d. another person, other than the debtor: (1) has control of the deposit account and acknowledges that ithas control on behalf of the secured party; or (2) obtains control of the deposit account after having acknowledged that itwill obtain control of the deposit account on behalf of the secured party. 2. Debtor’s right to direct disposition. A secured party that has satisfiedsubsection 1 has control, even ifthe debtor retains the right to direct the disposition of funds from the deposit account.
‹ Prev All Iowa sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.