N.Y. Uniform Commercial Code Law § 9-104: Control of Deposit Account

Section 9--104. Control of Deposit Account.

(a) Requirements for control. 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 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;

(3) the secured party becomes the bank's customer with respect to

the deposit account;

(4) the name on the deposit account is the name of the secured

party or indicates that the secured party has a security

interest in the deposit account; or

(5) another person, other than the debtor:

(A) has control of the deposit account and acknowledges that it has

control on behalf of the secured party; or

(B) obtains control of the deposit account after having acknowledged

that it will obtain control of the deposit account on behalf of the

secured party.

(b) Debtor's right to direct disposition. A secured party that has

satisfied subsection (a) has control, even if the debtor retains the

right to direct the disposition of funds from the deposit account.

(c) No implied duties of bank. The authentication of a record by the

bank under subsection (a)(2) does not impose upon the bank any duty not

expressly agreed to by the bank in the record. The naming of the deposit

account in the name of the secured party or with an indication that the

secured party has a security interest in the deposit account under

subsection (a)(4) does not impose upon the bank any duty not expressly

agreed to by the bank.

(d) Conditions not relevant. A secured party has control under

subsection (a)(2) even if any duty of the bank to comply with

instructions originated by the secured party directing disposition of

the funds in the deposit account is subject to any condition or

conditions (other than further consent by the debtor).

(e) No inferences. The procedures and requirements of subsection

(a)(4) available to obtain control shall not be used in interpreting the

sufficiency of a secured party's compliance with the procedures and

requirements of subsection (a)(1), (a)(2) or (a)(3) to obtain control.

The provisions of subsection (a)(4) shall create no inference regarding

the requirements for compliance with subsection (a)(1), (a)(2) or

(a)(3).