An account control agreement, sometimes called a deposit account control agreement or simply DACA, is a legal contract between a depositing customer, their lender, and a bank. This agreement allows a borrower to grant a lender a guarantee right to a bank account. Deposit guarantee agreements are very specific and are most often used in commercial real estate transactions. CAACs typically offer the lender the most benefits, as interest on a borrower`s account reduces the lender`s financial risk. The bank involved in the audit agreement should be willing to work with both parties to ensure that the terms of the agreement are fair. The lender can create a distribution plan with the bank to provide additional flexibility in account management. In the event of a dispute between the undersigned in connection with this Agreement or with respect to the right to receive the financial assets, the parties to the guarantees shall have the right to consult a lawyer and/or issue a bill of exchange in any court having jurisdiction to determine the rights of the parties. If the guarantors receive written evidence that a dispute has arisen with respect to the financial assets, the non-collateral parties may surrender the financial assets to any court of competent jurisdiction and request that court to rule on the claim on those financial assets through Interpleader or other legal proceedings. With respect to this paragraph, if such acts are necessary or if the parties to the guarantee are involved in a dispute in any way as a result of this Agreement or the financial assets, the debtor undertakes and undertakes to appoint its successors, assigns and legal representatives, the collateral parties in addition to the fees charged under this Agreement to act as an intermediary or Administrator of guarantee to be paid. reasonable and documented attorneys` fees (other than assigned costs of in-house counsel) incurred by him, as well as all other disbursements, expenses, losses, costs and damages in connection with and as a result of such actions (with the exception of the foregoing provisions which would not have been incurred without the bad faith, gross negligence or wilful misconduct of the agent or warranty administrator), as appropriate). 1. Where an agreement between the bank and the debtor governing the deposit account expressly provides that a particular court is the jurisdiction of the bank for the purposes of this Part, this Article or [the Uniform Commercial Code], that court shall be the jurisdiction of the bank.

(b) The Client has granted the Administrative Agent a security right in the deposit account and hereby grants it. The Bank acknowledges the security that the Client has granted to the Management Agent in the deposit account. The Bank further acknowledges and represents that this is a “Bank” and that the Deposit Account is an “Account” as defined in Section 9-102 of the Uniform Commercial Code as adopted in the State of Texas (the “UCC”). For the purposes of Article 9-304 of the UCC, the jurisdiction of the Bank is the State of Texas. A current account control agreement is an agreement between the borrower, the lender and a bank. This agreement is also known as the control agreement. To help the government combat terrorist financing and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies anyone who opens an account. When an account is opened, the intermediary requests information that allows him to identify the parties concerned. Although a security right in a deposit account can be further developed as a “product” of other collateral (e.g. B, debt collection) as long as the proceeds are “identifiable” according to the Unified Commercial Code (the “UCC”), the only way is to perfect a security right in a deposit account as the primary security (and to prevail over a competing security on the basis of a redemption claim), to have “control” over the deposit account.

Submitting a UCC funding statement is completely ineffective for this purpose. The parties agree that in the event of any conflict between this Agreement and any other agreement relating to Accounts, the provisions of this Agreement shall prevail. This Agreement may be performed in an unlimited number of duplicate originals, and any duplicate original will be considered original. This Agreement (and any duplicate of the original) may be signed in any number of counterparties, all of which together form a fully signed Agreement, even if not all signatures appear on the same document. (d) The Administrative Agent and the Client agree that, except as expressly provided in this Agreement, the Deposit Account shall be subject to the terms of the Bank`s Separate Deposit Account Agreement governing the Deposit Account (“Account Agreement”), of which the Client and the Administrative Agent confirm that they have received a copy, and that the operation of the Deposit Account will be carried out by the Bank in accordance with these Terms and Conditions and Regulations. In the event that the terms of the Account Agreement conflict with the terms of this Agreement, the terms of this Agreement shall prevail. The local law of a bank`s jurisdiction regulates perfection, the effect of perfection or non-perfection and the priority of a hedging interest in a deposit account held with that bank. I am a New York Licensed Attorney with over 6 years of experience in drafting, reviewing and negotiating a variety of contracts and agreements. I have experience in sports and entertainment, real estate, healthcare, estate planning and with start-ups. I am confident that I can help you with all your legal needs.

This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof. There are no verbal agreements between the parties. The following is a list of the general sections included in account control agreements. These sections are linked to the following sample agreement that you can explore. The inclusion of such wording could avoid the risks and uncertainties that would arise if the application of the provisions of Article 9(304)(b) of the UCC resulted in the identification of two separate jurisdictions under two separate agreements. The intermediary invests the collected funds credited to an account in eligible investments (as defined below) each business day on which the parties to the guarantee have received written instructions from an authorized representative of the debtor before 11:00.m. New York time (these instructions are referred to here as Appropriate Instructions). All authorized facilities are maintained in the name of the security officer. In accordance with all appropriate instructions, the intermediary shall make such eligible investments of the type selected in the appropriate instructions, subject to the availability of the selected eligible investments, with the amount in cash deposited in the accounts from 11:00.m.m. New York time on such a day. If the intermediary does not receive these appropriate instructions by 11:00.m.m.

New York time, the funds deposited in the accounts do not remain invested. The funds deposited in the accounts are initially not invested. Eligible investments have the meaning given to this term in the loan agreement. An eligible investment may be made through or through the security guard or one of his affiliates. (b) The Bank may rely on notices and communications that it reasonably believes have been provided by an authorized representative of the administrative agent or client, and the Bank has no obligation to verify or confirm that the actions taken pursuant to such notice in accordance with this Agreement are in accordance with any other agreement or document. Without limiting the foregoing, the Bank is not required to determine whether an event of default occurred after receipt of a declaration of default […].