TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 9

SECURED TRANSACTIONS

PART 3.

PERFECTION AND PRIORITY

28-9-327.  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 28-9-104 has priority over a conflicting security interest held by a secured party that does not have control.

(2)  Except as otherwise provided in subsections (3) and (4) of this section, security interests perfected by control under section 28-9-314 rank according to priority in time of obtaining control.

(3)  Except as otherwise provided in subsection (4) of this section, 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 28-9-104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.

History:

[28-9-327, added 2001, ch. 208, sec. 2, p. 749.]