Deposit Account Control Agreement Governing Law

The inclusion of such a language could avoid the risks and uncertainties that would arise if the application of the provisions of the Directive implementing Article 9-304(b) of the UZK resulted in the identification of two separate courts in the context of two separate agreements. This agreement is «an agreement between the bank and its customer on the current account» within the meaning of UCC § 9-304 (b). The designation of the Bank`s jurisdiction for the purposes of the Single Commercial Code in this Agreement shall apply in the event of any conflict between this Agreement and another agreement between the Bank and its client that governs [the Account]. UZK § 9-304 (b) provides a «cascade» of methods for determining the competence of a depositary bank for the purposes of the PEC. UCC § 9-304 (b) (1) provides that «if an agreement between the bank and its customer, which governs the current account, expressly provides that a specific jurisdiction is the jurisdiction of the bank for the purposes of the IAP, that jurisdiction is the jurisdiction of the bank».; UCC § 9-304 (b) (2) states that «if paragraph 1 is not applicable and an agreement between the bank and its customer, which governs the current account, expressly provides that the agreement is governed by the law of a particular court, that jurisdiction shall be the jurisdiction of the bank.» If the insured party is also the bank where the current account is held, the PED provides that the secured party automatically has «control» of the account. If the account is held with a bank that is not the secured party, a secured party may take «control» of that account by taking the account in its own name (i.e.: the secured party`s account held with the depositary bank) is obtained for the benefit of the debtor or, more often, by entering into a «control agreement» in which the custodian bank agrees to comply with the instructions it receives from the guaranteed part. on the funds in the account without further agreement of the debtor. If you get the deal that you`ve been interested in for some time and your borrower wants to keep an account outside of your bank, don`t sweat – perfect. The deposit account control agreement defines the rights and obligations of the mutuals with regard to the account and the reciprocals, in this case, undertake to follow the instructions of you, the lender, without the agreement of your borrower. You probably won`t have to give any instructions unless there is a failure event.

An assurance by the borrower that the account is a «current account» A problem could arise if the control contract and the «customer contract» concluded between the custodian bank and the debtor as a customer in connection with the opening of the account explicitly provide for a special but different jurisdiction for the purposes of the PEK. any agreement being «an agreement between the bank and its customer that governs the current account». The same problem could arise if neither the control contract nor the customer contract explicitly provides for the competence of the bank, but any such agreement provides that it is subject to the law of a particular but different jurisdiction. . . .