Commonwealth Consolidated Acts

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PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 341A

Control of an ADI account

  (1)   For the purposes of subsection   340(2), a secured party has control of an ADI account if:

  (a)   one or more of the following applies:

  (i)   the secured party is the ADI;

  (ii)   the secured party is able to direct disposition of the funds from the account without further consent by the grantor;

  (iii)   the secured party becomes the ADI's customer with respect to the account; and

  (b)   if the secured party is not the ADI--depositing an amount in the ADI account does not result in any person coming under a present liability to pay:

  (i)   the debtor; or

  (ii)   if the debtor is a body corporate--a related body corporate (within the meaning of the Corporations Act   2001 ).

Note:   However, a security interest in an ADI account is only perfected by control if the secured party is the ADI (see sections   21 and 25).

  (2)   A secured party has control under subsection   (1) even if the grantor retains the right to direct the disposition of funds from the account.

 


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