Key Provisions In Account Control Agreements

Law360, New York (January 11, 2012, 11:26 AM EST) -- Satisfactory cash-management structure of the debtor is one of the most important aspects of a secured lending transaction, and, in fact, a secured lender's ability to make a secured loan is customarily predicated upon the taking of a first‐priority, perfected security interest in a substantial portion of the debtor's deposit accounts.

Contrary to the general rule of perfection by filing, perfection of a security interest in a deposit account may be accomplished only by control as provided in Section 9‐314 of the UCC. Section 9‐314 of...
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