Account Control Agreement

• Category: Contracts - Mutual Agreements
• State: Multi-State
• Control #: US-C-MA-77334-01
• Format: Word; Rich Text

Description

This is a sample Account Control Agreement. An account control agreement, sometimes called a deposit account control agreement or simply, DACA, is a legal contract executed between a deposit customer, their lender, and a bank. This agreement enables a borrower to grant a lender security interest in a bank account. Deposit account control agreements are highly specific and used most commonly in commercial real estate transactions. DACAs usually provide the most benefits to the lender because having interest in a borrower’s account lessens the lenders financial risk. The bank involved in the account control agreement should be willing to work with both parties to help ensure the terms of the agreement are fair. The lender can set up a distribution schedule with the bank to provide extra flexibility with account management.