What is the only way to perfect an interest in commercial deposit accounts?

To perfect an interest in commercial deposit accounts, a secured party must establish a control over the account that complies with Article 9 of the Uniform Commercial Code (UCC). Control means that the secured party has the ability to manage or access the account without further authorization from the debtor.

The correct method to perfect a security interest in a commercial deposit account is through a control agreement with the bank where the deposit account is maintained. This agreement allows the secured party to gain control over the funds in the account, establishing their priority in case of debtor default.

The answer suggesting that no additional steps are required implies that the security interest in a commercial deposit account is automatically perfected without any further action. However, the UCC specifies that perfection typically requires an affirmative step to establish control, which is not satisfied by simply holding the interest or relying on other methods like filing a UCC-1 financing statement for other types of collateral. Thus, while a financing statement is useful for many collateral types, it is not sufficient for perfecting an interest in commercial deposit accounts without additional steps to establish control.

A control agreement solidifies the rights of the secured party, thus making it the definitive method for perfection in the case of commercial deposit accounts. This understanding clarifies why the