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. 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. 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. For more DACA information on regions: Contact your Regional Cash Management Officer or Relationship Manager, call the DACA Central Team at 1-877-453-DACA (1-877-453-3222) or email [email protected]. 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. Disposition Order – An instruction to the bank that orders the disposition of funds in the deposit account. 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. Active Deposit Account Control Agreement — A control agreement that directs the bank to receive disposition instructions from the secured party (not the debtor). The Regions Deposit Agreement covers all deposit accounts you have or have had with Regions Bank from time to time, under any name or description, including but not limited to checking accounts, savings accounts, money market accounts, term deposit accounts and certificates of deposit. 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.
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). 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. 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. First of all, there are two types of deposit account control agreements: assets and liabilities. Call the centralized DACA team at 1.877.453.DACA. mul See recent changes to the Regional Deposit Agreement. Changes will take effect on the date(s) specified in the notice. .
The Agreement and Disclosure Statement for the Use of ATM Cards, Debit Cards and Cheque Cards covers the possession and use of a card that we issue to you at your request or that we activate under this Agreement for access or account transactions. What are the benefits of implementing DACA with regions? Check out the current regional filing agreement with all recent changes… .
