§ 336.9-327 — Priority of Security Interests in Deposit Account
Plain-Language Summary
A security interest in a deposit account perfected by control has priority over one not perfected by control. The bank where the account is held has priority over other secured parties who have control.
336.9-327 PRIORITY OF SECURITY INTERESTS IN DEPOSIT ACCOUNT.
The following rules govern priority among conflicting security interests in the same deposit account:
(1) A security interest held by a secured party having control of the deposit account under section 336.9-104 has priority over a conflicting security interest held by a secured party that does not have control.
(2) Except as otherwise provided in paragraphs (3) and (4), security interests perfected by control under section 336.9-314 rank according to priority in time of obtaining control.
(3) Except as otherwise provided in paragraph (4), a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.
(4) A security interest perfected by control under section 336.9-104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.
History:
History: History:
2000 c 399 art 1 s 47