Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 9. · Article 9. SECURED TRANSACTIONS · Part 1. GENERAL PROVISIONS

11-9-104. Control of deposit account.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

(a)
Requirements for control. A secured party has control of a deposit account if:#
1. (1)
  The secured party is the bank with which the deposit account is maintained;#
2. (2)
  The debtor, secured party, and bank have agreed in a signed 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;#
3. (3)
  The secured party becomes the bank’s customer with respect to the deposit account; or#
4. (4)
  Another person, other than the debtor:#
  (A)
  Has control of the deposit account and acknowledges that it has control on behalf of the secured party; or#
  (B)
  Obtains control of the deposit account after having acknowledged that it will obtain control of the deposit account on behalf of the secured party.#
(b)
Debtor’s right to direct disposition. A secured party that has satisfied subsection (a) of this Code section has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1981, § 11-9-104, enacted by Ga. L. 2001, p. 362, § 1; Ga. L. 2024, p. 817, § 5-41/HB 1240, effective July 1, 2024.

Amendments

The 2024 amendment, effective July 1, 2024, in paragraph (a)(2), substituted “a signed” for “an authenticated” near the beginning and deleted “or” at the end; substituted “; or” for a period at the end of paragraph (a)(3); and added paragraph (a)(4).

Editor's notes

Ga. L. 2024, p. 817, § 1-1/HB 1240, not codified by the General Assembly, provides: “This Act shall be known and may be cited as the ‘Uniform Commercial Code Modernization Act of 2024.’” Ga. L. 2024, p. 817, § 1-2/HB 1240, not codified by the General Assembly, provides: “Nothing in this Act shall be construed to support, endorse, create, or implement a national digital currency.”

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-pdf.pdf, Volume V9, 2022 edition, 2025 supplement, page 88; merge action: replaced; file SHA-256 df9393c4ba3b.

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