Aba Model Form Deposit Account Control Agreement

Why do lenders use account management agreements? Clients often do not host their deposits with their lenders and some lenders do not offer deposit accounts. Lenders enter into deposit account control agreements such as an additional level of default protection and loan repayment assistance. Secure Part (Lender) - part of a DACA that borrows funds and obtains a perfect security interest on the debtor`s deposit account when executing the contract. UCC No. 9-104 — The "Single Code of Trade" section that deals with deposit account control. This section enhances the security interests on deposit accounts as an original guarantee. For more information on DACA regions: Contact your regional cash management or relationship manager, call the DACA Central Team at 1-877-453-DACA (1-877-453-3222) or email DACA@regions.com. Deposit Account Control Agreement (DACA) - A tripartite agreement between a client (debtor), an insured party (lender) and a bank that allows the lender to enhance a security interest in the client`s funds by taking control of the deposit account (UCC No. 9-104).

Active Deposit Account Control Agreement - A control agreement that orders the bank to accept the instructions of the secured party (not the debtor). Debtor (client) - As one of the three parts of the DACA, the debtor provides the security and receives the deposits into the deposit account. First, there are two types of account control agreements: assets and liabilities. A deposit account control agreement (DACA), also known as a control agreement, is a tripartite agreement between a deposit client (the debtor), a client`s lender (the guaranteed party) and a bank. The establishment of a deposit account control agreement allows lenders to upgrade their interest on a debtor`s deposit account (UCC No. 9-104) and to define the disposition instructions (transfer instructions) addressed to the bank with respect to the controlled account or accounts. Regions have a centralized and experienced account control team that can offer a number of benefits to lenders and clients as well as their law firms. The first instruction — An instruction given to the bank comes from the lender, which orders it to stop following the debtor`s instructions.