deposit account control agreement
deposit account control agreement (DACA)
USA
The agreement in which a debtor, secured party, and bank maintaining the deposit account have agreed 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 (UCC §9-104). The deposit account control agreement enables the secured party to obtain control over the deposit account, and so enables its security interest in the deposit account to be perfected. It is an example of a collateral document (collateral documents) entered into by a debtor to secure obligations under a loan agreement.
For further information, see Practice Note, UCC: Creation, Perfection and Priority of Security Interests (www.practicallaw.com/6-381-0551) and Practice Note, Security Interests in Deposit Accounts (www.practicallaw.com/8-382-8183).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • account — a record of a business transaction. When you buy something on credit, the company you are dealing with sets up an account . This means it sets up a record of what you buy and what you pay. You will do the same thing with any customers to whom you …   Financial and business terms

  • Merchant account — A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of credit… …   Wikipedia

  • Demat account — The term Demat, in India, refers to a dematerialised account for individual Indian citizens to trade in listed stocks or debentures, required for investors by The Securities Exchange Board of India (SEBI). In a demat account, shares and… …   Wikipedia

  • DACA — deposit account control agreement (DACA) USA The agreement in which a debtor, secured party, and bank maintaining the deposit account have agreed that the bank will comply with instructions originated by the secured party directing disposition of …   Law dictionary

  • collateral documents — USA Also known as security documents. The loan documents in a secured loan transaction which secure the borrower s obligations to the lender under the loan agreement. Collateral documents include any documents granting a security interest in… …   Law dictionary

  • security documents — USA Also known as collateral documents. The loan documents in a secured loan transaction which secure the borrower s obligations to the lender under the loan agreement. Collateral documents include any documents granting a security interest in… …   Law dictionary

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • Federal Reserve System — FRB and FED redirect here. For other uses, see FRB (disambiguation) and FED (disambiguation). Federal Reserve System …   Wikipedia

  • environment — environmental, adj. environmentally, adv. /en vuy reuhn meuhnt, vuy euhrn /, n. 1. the aggregate of surrounding things, conditions, or influences; surroundings; milieu. 2. Ecol. the air, water, minerals, organisms, and all other external factors… …   Universalium

  • money — moneyless, adj. /mun ee/, n., pl. moneys, monies, adj. n. 1. any circulating medium of exchange, including coins, paper money, and demand deposits. 2. See paper money. 3. gold, silver, or other metal in pieces of convenient form stamped by public …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.