Tex. Bus. & Com. Code § 9.104

CONTROL OF DEPOSIT ACCOUNT

Known as the Uniform Commercial Code

The act spans §§ 1–12 (616 sections).

Applied in 2 court decisions — leading case 941 F. Supp. 2d 731 - Sgroe v. Wells Fargo Bank, N.A. (2013)

Most recently applied in 941 F. Supp. 2d 731 - Sgroe v. Wells Fargo Bank, N.A. (April 2013)

Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff

(a) A secured party has control of a deposit account if:

(1) the secured party is the bank with which the deposit account 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 without further consent by the debtor; or

(3) the secured party becomes the bank's customer with respect to the deposit account.

(b) A secured party that has satisfied Subsection (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.