DACA Clause Samples
A DACA (Deposit Account Control Agreement) clause establishes the rights and priorities of a secured party, such as a lender, over a debtor’s deposit account held at a financial institution. This clause typically outlines how the bank will follow instructions from the secured party regarding the disposition of funds in the account, often without further consent from the account holder once certain conditions are met, such as a default. The core practical function of a DACA clause is to perfect the lender’s security interest in the deposit account, ensuring the lender can control or access the funds if the borrower defaults, thereby reducing the lender’s risk.
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DACA. Notwithstanding any other provision herein, an employee may not be discharged or otherwise disciplined because the employee has work authorization through the Federal Deferred Action for Childhood Arrivals (DACA) program, if such authorization is currently valid under applicable law and accompanied by an unexpired work authorization document.
DACA. Following completion of the Additional Funding, the Initial Pre-Paid Purchase will be secured by cash in an amount not less than the lesser of (i) $4,602,275.00, and (ii) 90% of the then-current outstanding balance of the Initial Pre-Paid Purchase (the “Minimum Balance Amount”). The Minimum Balance Amount will be held in a deposit account (“Deposit Account”) pursuant to a Deposit Account Control Agreement between IPDN Holdings and Investor, in substantially the form attached hereto as Exhibit B (the “DACA”); provided, however, that Company shall have the right to use such cash to repay any portion of the Pre-Paid Purchase Outstanding Balance (but only so long as such payment does not cause the outstanding balance to drop below the Minimum Balance Amount), and so long as no Event of Default under the Initial Pre-Paid Purchase has occurred and with Investor’s consent, to withdraw from the Deposit Account any funds in excess of the Minimum Balance Amount. Company may only request withdrawals from the Deposit Account once per month and in an amount no less than $25,000.00. Company hereby grants to Investor a first-position security interest in the Deposit Account and acknowledges and agrees that Investor will have the right to file a UCC-1 Financing Statement with respect to the Deposit Account. Company acknowledges and agrees that Investor will have control over the Deposit Account within the meaning of Section 9-104 of the Uniform Commercial Code pursuant to the terms of the DACA.
DACA. The Obligations shall be secured by a Deposit Account Control Agreement of even date herewith among ALLR Holdings, the Bank (as defined in the DACA), and Investor (the “DACA”), the Deposit Account (as defined in the DACA), and the funds held therein pursuant to the DACA. ALLR Holdings hereby grants to Investor a first-position security interest in and lien on the Deposit Account and the funds held in the Deposit Account and acknowledges and agrees that Investor will have the right to file a UCC-1 Financing Statement with respect to the Deposit Account. ALLR Holdings acknowledges and agrees that Investor will have control over the Deposit Account within the meaning of Section 9-104 of the Uniform Commercial Code pursuant to the terms of the DACA. ALLR Holdings acknowledges and agrees that Investor is authorized to deliver a Lender Instruction Notice (as defined in the DACA) to the Bank directing the disposition of the funds held in the Deposit Account: (a) upon the occurrence of a Trigger Event (as defined in the Notes); or (b) upon Investor’s receipt of a notice from Company pursuant to Section 4(viii) of the Purchase Agreement (or otherwise becoming aware of an action described therein). Upon sending a Lender Instruction Notice, Investor will have the right without further notice or demand, to apply all or any portion of the funds held in the Deposit Account to the Obligations.
DACA. A deposit account control agreement entered into by the Depository Bank, Borrower and Lender, in form and content satisfactory to Lender, pursuant to which the Depository Bank expressly acknowledges the existence of Lender’s first priority security interest in the
DACA. The Obligations shall be secured by the Deposit Account (as defined in the Purchase Agreement) and the funds held therein pursuant to the DACA (as defined in the Purchase Agreement). Guarantor hereby grants to Investor a first-position security interest in and lien on the Deposit Account and the funds held in the Deposit Account and acknowledges and agrees that Investor will have the right to file a UCC-1 Financing Statement with respect to the Deposit Account. Guarantor acknowledges and agrees that Investor will have control over the Deposit Account within the meaning of Section 9-104 of the Uniform Commercial Code pursuant to the terms of the DACA. Guarantor acknowledges and agrees that Investor is authorized to send a Lender Instruction Notice (as defined in the DACA) to the Bank (as defined in the DACA) directing the disposition of the funds held in the Deposit Account: (a) upon the occurrence of an Event of Default (as defined in the Pre-Paid Purchase); and (b) upon Investor’s receipt of a notice from Company pursuant to Section 4(ix) of the Purchase Agreement (or otherwise becoming aware of an action described therein). Upon sending a Lender Instruction Notice, Lender will have the right without further notice or demand, to apply all or any portion of the funds held in the Deposit Account to the Obligations.
DACA. The Note will be secured by a Deposit Account Control Agreement among XAIR Holdings, Bank and Investor, in substantially the form attached hereto as Exhibit B (the “DACA”). Initially, the cash collateral requirement for the Deposit Account will be $6,000,000.00 (the “Minimum Balance Amount”). The Minimum Balance Amount will be held in a deposit account in the name of XAIR Holdings (“Deposit Account”) and Company shall have the right to use the cash in the Deposit Account to repay any portion of the Outstanding Balance (as defined in the Note) (but only so long as such payment does not cause the total cash amount in the Deposit Account to drop below the Minimum Balance Amount), and so long as no Trigger Event (as defined in the Note) under the Note has occurred and with Investor’s consent, to withdraw from the Deposit Account any funds in excess of the Minimum Balance Amount. The Minimum Balance Amount will automatically be reduced by $0.50 for every $1.00 of the Outstanding Balance that is repaid for the first $3,000,000.00 in repayment. Thereafter, the Minimum Balance Amount will automatically be reduced by $0.75 for every $1.00 of the Outstanding Balance that is repaid until the Deposit Account balance reaches $1,000,000.00. At such time as the Deposit Account balance reaches $1,000,000.00, the cash collateral requirement for the Deposit Account shall automatically terminate, and Company may withdraw the entire remaining balance from the Deposit Account. Company may only request withdrawals from the Deposit Account once per calendar month and in an amount not less than $25,000.00.
DACA. Following the Effective Date and notwithstanding anything in this Agreement to the contrary, Lender shall waive compliance with the Borrower's covenant to provide Lender with a DACA securing Lender's interest in Borrower's Primary Accounts, which waiver shall continue until it is withdrawn by ▇▇▇▇▇▇, in its sole discretion.
DACA. The Note shall be secured by cash in the amount of $8,000,000.00 (the “Collateral Requirement”). The Collateral Requirement will be held in an interest-bearing deposit account to be opened with Lakeside Bank, in the name of JAGX Sub (the “Deposit Account”) pursuant to a Deposit Account Control Agreement between JAGX Sub, Investor, and Lakeside Bank, substantially in the form attached hereto as Exhibit B (the “DACA”). The Deposit Account shall accrue interest at the prevailing highest money-market rate then offered by Lakeside Bank for deposits of that type, as determined by Lakeside Bank from time to time, and all interest shall be credited to the Deposit Account. Commencing on the Closing Date, the Collateral Requirement shall decrease: (i) by $1.00 for every $2.50 of Unsecured Outstanding Obligations (as defined below) that are repaid by the Company to the Investor or any its affiliates (as applicable), until the Collateral Requirement has been reduced to $4,000,000.00, and (ii) thereafter $1.00 for every $2.00 of Unsecured Outstanding Obligations so repaid. For purposes of the preceding sentence, “repaid” means amounts actually applied to permanently reduce Unsecured Outstanding Obligations and excludes any re-advances, reborrowings, or accruals. At any time that there is an amount on deposit in the Deposit Account that is at least $100,000.00 or more in excess of the then-existing Collateral Requirement, upon the Company’s request, Investor shall, within a commercially reasonable time, instruct Lakeside Bank to disburse all of such excess funds in the Deposit Account as the Company may request in accordance with the terms of the DACA. Once the balance of the Deposit Account is $500,000.00 or less, the Collateral Requirement shall automatically terminate, and the Company may withdraw any and all remaining funds in the Deposit Account at its discretion, and upon the Company’s request, Investor shall, within a commercially reasonable time: (x) instruct Lakeside Bank to disburse any and all remaining funds in the Deposit Account as the Company may request and (y) deliver a notice terminating the DACA to Lakeside Bank, in each case, in accordance with the terms of the DACA. Company and JAGX Sub covenant and agree that they shall not, and shall not permit any person to, encumber any assets of JAGX Sub, including the Deposit Account, except in favor of the Investor pursuant to this Section 1.4 and the DACA. Subject to the Collateral Requirement and the absenc...
DACA. Within thirty (30) days following the Closing Date, the Agent shall have received the duly executed Deposit Account Control Agreement, which shall be in full force and effect and in form and substance reasonably satisfactory to the Agent and the Initial Lender.
DACA. The Note will be secured, in part, by a Deposit Account Control Agreement among CNEY Holdings, Lakeside Bank and Investor, in substantially the form attached hereto as Exhibit B (the “DACA”). The cash collateral requirement for the Deposit Account (as defined below) will be the lesser of (i) $6,000,000.00, and (ii) eighty-five percent (85%) of the then-current Outstanding Balance (as defined in the Note) (the “Minimum Balance Amount”). The Minimum Balance Amount will be held in a segregated deposit account owned by CNEY Holdings (“Deposit Account”). Company shall have the right to use the cash in the Deposit Account to repay any portion of the Outstanding Balance (but only so long as such payment does not cause the total cash amount in the Deposit Account to drop below the Minimum Balance Amount), and so long as no Event of Default (as defined in the Note) under the Note has occurred and with Investor’s prior written consent, not to be unreasonably withheld, conditioned or delayed, to withdraw from the Deposit Account any funds in excess of the Minimum Balance Amount. Notwithstanding anything to the contrary herein or in the DACA, so long as (i) no Event of Default has occurred, and (ii) the cash balance maintained in the Deposit Account immediately after giving effect to any such withdrawal is not less than the Minimum Balance Amount, Company or CNEY Holdings shall be permitted, with Investor’s prior written consent (not to be unreasonably withheld, conditioned or delayed), to withdraw and use funds in the Deposit Account in excess of the Minimum Balance Amount for working capital and other general corporate purposes. Company may only request withdrawals from the Deposit Account once per month and in an amount not less than $25,000.00.