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Tex. Bus. & Com. Code § 9.327

PRIORITY OF SECURITY INTERESTS IN DEPOSIT ACCOUNT

Known as the Uniform Commercial Code

The act spans §§ 1–12 (616 sections).

Applied in 2 court decisions — leading case 717 F. Supp. 2d 599 - City Bank v. Compass Bank (2010)

Most recently applied in 717 F. Supp. 2d 599 - City Bank v. Compass Bank (May 2010)

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

The following rules govern priority among conflicting security interests in the same deposit account:

(1) A security interest held by a secured party having control of the deposit account under Section 9.104 has priority over a conflicting security interest held by a secured party that does not have control.

(2) Except as otherwise provided in Subdivisions (3) and (4), security interests perfected by control under Section 9.314 rank according to priority in time of obtaining control.

(3) Except as otherwise provided in Subdivision (4), a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.

(4) A security interest perfected by control under Section 9.104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.

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