336.9-104 Control of deposit account.
(a) Requirements for control. 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) Debtor's right to direct disposition. 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.
HIST: 2000 c 399 art 1 s 4
* NOTE: This section, as added by Laws 2000, chapter 399, *article 1, section 4, is effective July 1, 2001. Laws 2000, *chapter 399, article 1, section 130.
* NOTE: Minnesota Statutes 1998, section 336.9-104, which *reads as follows, is repealed July 1, 2001. Laws 2000, chapter *399, article 1, section 130.
* "336.9-104 Transactions excluded from article.
* This article does not apply
* (a) to a security interest subject to any statute of the *United States such as the Ship Mortgage Act, 1920, to the extent *that such statute governs the rights of parties to and third *parties affected by transactions in particular types of *property; or
* (b) to a landlord's lien; or
* (c) to a lien given by statute or other rule of law for *services or materials except as provided in section 336.9-310 on *priority of such liens; or
* (d) to a transfer of a claim for wages, salary or other *compensation of an employee; or
* (e) to a transfer by a government or governmental *subdivision or agency to the extent that this article conflicts *with special statutory provisions relating to such a transfer; *or
* (f) to a sale of accounts or chattel paper as part of a *sale of the business out of which they arose, or an assignment *of accounts or chattel paper which is for the purpose of *collection only, or a transfer of a right to payment under a *contract to an assignee who is also to do the performance under *the contract or a transfer of a single account to an assignee in *whole or partial satisfaction of a preexisting indebtedness; or
* (g) to a transfer of an interest or claim in or under any *policy of insurance, except as provided with reference to *proceeds (section 336.9-306) and priorities in proceeds section *(336.9-312); or
* (h) to a right represented by a judgment (other than a *judgment taken on a right to payment which was collateral); or
* (i) to any right of setoff; or
* (j) except to the extent that provision is made for *fixtures in section 336.9-313, to the creation or transfer of an *interest in or lien on real estate, including a lease or rents *thereunder; or
* (k) to a transfer in whole or in part of any claim arising *out of tort; or
* (l) to a transfer of an interest in any deposit account *(subsection (l) of section 336.9-105), except as provided with *respect to proceeds (section 336.9-306) and priorities in *proceeds (section 336.9-312); or
* (n) to a transfer of an interest in a letter of credit *other than the rights to proceeds of a written letter of credit."