N.D. Cent. Code § 41-09-04
(9-104) Control of deposit account or uncertificated certificate of deposit
Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
(1) A secured party has control of a deposit account or uncertificated certificate of deposit if: The secured party is the bank with which the deposit account or uncertificated certificate of deposit is maintained;
(1) A secured party has control of a deposit account or uncertificated certificate of deposit if: The secured party is the bank with which the deposit account or uncertificated certificate of deposit is maintained;
(2) The debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account or uncertificated certificate of deposit without further consent by the debtor; or
(2) The debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account or uncertificated certificate of deposit without further consent by the debtor; or
(3) The secured party becomes the bank’s customer with respect to the deposit account or uncertificated certificate of deposit.
(3) The secured party becomes the bank’s customer with respect to the deposit account or uncertificated certificate of deposit.
(4) A secured party that has satisfied subsection 1 has control, even if the debtor retains the right to direct the disposition of funds from the deposit account or uncertificated certificate of deposit.
(4) A secured party that has satisfied subsection 1 has control, even if the debtor retains the right to direct the disposition of funds from the deposit account or uncertificated certificate of deposit.
(5) Requirements for “Control.” This section derives from Section 8-106 of Revised Article 8, which defines “control” of securities and certain other investment property. Under subsection (a)(1), the bank with which the deposit account is maintained has control. The effect of this provision is to afford the bank automatic perfection. No other form of public notice is necessary; all actual and potential creditors of the debtor are always on notice that the bank with which the debtor’s deposit account is maintained may assert a claim against the deposit account.
Official source: North Dakota Legislative Branch. Reproduced from public-domain North Dakota statutes; confirm against the official source for the current text. Not legal advice.