Aba Deposit Account Control Agreement Form

To learn more about the regions, please contact your regional cash management manager or relationship manager, call the centralized DACA team at 1-877-453-DACA (1-877-453-3222) or email DACA@regions.com. Debtor (customer) – As one of the three parts of the DACA, the debtor provides the guarantees and receives the deposits in the current account. Disposition Instructions – An instruction to the bank that manages the disposition of funds on the current account. In the first place, there are two types of deposit account control agreements: assets and liabilities. Secure Party (Lender) – part of a DACA that lends funds and receives an advanced security interest on the debtor`s checking account upon execution of the agreement. Advanced Security Interest – Once the DACA is executed, the secured party will be granted an advanced collateral right which, in accordance with the Single Commercial Code, gives it the exclusive right to control the debtor`s current account. A Deposit Account Control Agreement (DACA), also known as a Control Agreement, is a tripartite agreement between a deposit customer (the debtor), a deposit customer`s lender (the secured party) and a bank. Initial instructions — an instruction to the bank that comes from the lender and ordered the lender to stop following the debtor`s instructions. The initial instruction often contains a disposition order that comes from the secured part and allows the secured party to direct the flow of money from the checking account. Active Deposit Account Control Agreement – A control agreement that has instructed the bank to receive disposition instructions from the secured party (not the debtor). Why do lenders use deposit account control agreements? Often, customers do not host their deposits with their lenders and some lenders do not offer deposit accounts.

Lenders enter into deposit account control agreements as additional protection against defaults and to help repay their loans. Deposit Account Control Agreement (DACA) – A tripartite agreement between a customer (debtor), a secured party (lender) and a bank allowing the lender to perfect a security interest in the customer`s funds by taking control of the current account (UCC § 9-104). The establishment of a deposit account control agreement allows lenders to perfect their interest in a debtor`s current accounts (UCC § 9-104) and to define who can introduce disposition instructions (transfer instructions) to the bank in respect of the controlled current account(s). Regions has an experienced and centralized deposit account control team, which can offer a number of benefits to lenders and clients as well as their law firms. UZK § 9-104 – The section of the Single Commercial Code that deals with “checking the current account”. This section helps to perfect the security interests on deposit accounts as an original guarantee. . Call the centralized DACA team at 1.877.453.DACA. or What are the benefits of creating a DACA with regions?. . .


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