Deposit Account Control Clause Samples
The Deposit Account Control clause establishes the rights and procedures for a secured party to control and access funds held in a debtor's deposit account. Typically, this clause outlines the conditions under which a lender or creditor can direct the bank to transfer or freeze funds, often requiring the bank to comply with instructions from the secured party without further consent from the account holder. Its core practical function is to ensure the secured party can enforce its security interest in the deposit account, thereby reducing the risk of non-payment or unauthorized withdrawals by the debtor.
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Deposit Account Control. Agreements executed by the Borrower, any Guarantor and any other Subsidiary, granting to the Administrative Agent for the benefit of the Administrative Agent and the Lenders a first and prior Lien, subject to Permitted Liens, on and covering the Deposit Accounts (other than the Site Specific Trust Accounts) and Securities Accounts of the Borrower or such Subsidiary, respectively, including those described on Schedule 6.16.
Deposit Account Control. The Borrower shall cause each of its Deposit Accounts (other than (a) any Deposit Account that is a payroll, withholding tax, or tax trust or fiduciary account, so long as the Borrower and its Subsidiaries do not deposit or maintain funds in such payroll accounts or tax accounts in excess of amounts necessary to satisfy current payroll liabilities, payroll taxes or other wage and benefit payments, and (b) any Deposit Account that Administrative Agent determines is not material) to be a Controlled Account.
Deposit Account Control. Upon request by ▇▇▇▇▇▇, Borrower shall execute a deposit account control agreement with respect to its Operating Account, in a form acceptable to Lender. Borrower shall obtain, from an appropriate officer of the institution where the Operating Account is maintained, the proper and binding assent of that institution to a deposit account control agreement in form acceptable to Lender. In the event the institution fails or refuses to do so, ▇▇▇▇▇▇▇▇ shall establish its Operating Account at an institution which complies with this requirement.
Deposit Account Control. Agreements on all Deposit Accounts (other than Excluded Accounts) of Borrower and Subsidiary Guarantors, including their Dominion Accounts;