Aba Model Control Agreement

Active Deposit Account Control Agreement — A control agreement that directs the bank to receive disposition instructions from the secured party (not the debtor). Secured party (lender) — A part of a DACA that lends funds and receives an advanced security right in the debtor`s deposit account upon conclusion of the agreement. Why do lenders use deposit account control agreements? Often, customers do not account for their deposits with their lenders and some lenders do not offer deposit accounts. Lenders are putting in place deposit account control agreements as an additional layer of protection against defaults and to help them repay their loans. First of all, there are two types of deposit account control agreements: assets and liabilities. Advanced security right — When DACA is enforced, the secured party is granted an advanced security right that gives it exclusive rights to control the debtor`s deposit account under the Uniform Commercial Code. A Deposit Account Control Agreement (DACA), also known as a Control Agreement, is a tripartite agreement between a depositing customer (the debtor), the lender of a depositing customer (the secured party) and a bank. Entering into a deposit account control agreement allows lenders to refine their interest on a debtor`s deposit accounts (UCC § 9-104) and to define who can initiate disposition instructions (transfer) to the bank with respect to the controlled deposit account (controlled deposit accounts). Regions has an experienced and centralized deposit account control team that can provide a number of benefits to lenders and clients, as well as their law firms.

Deposit Account Control Agreement (DACA) – A tripartite agreement between a customer (debtor), a secured party (lender) and a bank that allows the lender to perfect a security right in the customer`s funds by taking control of the deposit account (UCC § 9-104). Debtor (Customer) — As one of three parties to DACA, the debtor provides the security and receives the deposits to the deposit account. First instruction – An instruction to the bank issued by the lender to stop following the debtor`s disposition instructions. The initial instruction often includes a disposition order from the secured party that allows the secured party to control the flow of money from the deposit account. . UCC § 9-104 – The “Uniform Commercial Code” section, which deals with “Deposit Account Control”. This section allows you to perfect the collateral on deposit accounts as an original guarantee. Call the centralized DACA team at 1.877.453.DACA. Or For more DACA information on regions: Contact your Cash Management Officer or Regional Relationship Manager, call the DACA Central Team at 1-877-453-DACA (1-877-453-3222) or email DACA@regions.com. Disposition Order – An instruction to the bank that orders the disposition of funds in the deposit account. What are the benefits of implementing DACA with regions? .

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