A borrower`s statement that the account is a “deposit account” should have an experienced in-house team responsible for implementing all DACs. Relationship officers should not implement DAC, but should be informed of the importance of sending DACA applications through the filing institution`s DACA preparation, verification and enforcement protocol. As long as DACA is carefully prepared and negotiated adequately by the custodian`s advisor, incorrect implementation of a DACA is the primary source of exposure to a custodian institution. The custodian ensures that all necessary checks have been carried out on the corresponding deposit accounts and that the depository is ready to implement and implement all the instructions it receives within the time frame set by the DACA. Small depots, in particular, should be alert to the lack of key personnel and have safeguard procedures in place to ensure that DACA instructions are always implemented in a timely manner. If the deposit establishment. B does not require exclusive control of deposit accounts within the DACA time frame, the deposit-taking institution may be held responsible for all withdrawals made by the borrower from the deposit accounts after the implementation of the exclusive control. Secure Part (Lender) – part of a DACA that borrows funds and obtains a perfect security interest on the debtor`s deposit account when executing the contract. If you get the deal you`ve loved for some time and your borrower wants to have an account outside your bank, you`re not sweating it – perfect. Each custodian bank often has its own form of DACA, although the above elements are common to each form. The DAC is the subject of discussions and negotiations.
Therefore, borrowers and lenders should be aware that it may take some time before a DACA is agreed and signed by all parties, so that the lender can obtain a perfect security interest on a deposit account. An agreement whereby reciprocity will not be entered into another account control agreement with another third party or another agreement regarding the borrower`s account. The lender should obtain a DACA from each third-party bank from which the borrower has a deposit account. A deposit bank that signs a DACA agrees to follow the lender`s instructions regarding the borrower`s money paid, without the borrower taking further action or the borrower`s agreement. Such an agreement gives the lender “control” of the deposit account required for perfection under the UCC. An admission by the custodian bank that DACA must certify the lender`s “control”; A statement from the deposit-making bank that the accounts concerned are “deposit accounts”; An agreement by the deposit-taking bank not to change the name or number of the deposit account without the lender`s written consent; An agreement between the deposit bank and the borrower to notify the lender before the closing of the deposit accounts and allow the lender to adopt a new DACA for all deposit accounts in which the borrower could defer cash security; and – An agreement of the deposit bank to subordinate all the pledge fees it has to the account and waive its right of clearing on the deposit account, with the exception of the amount of deposits credited to the account that are not repaid and the ordinary service charges charged by the deposit bank.