Deposit Account

Defined in the UCC (www.practicallaw.com/1-382-3891) as a demand, time, savings, passbook, or similar account maintained with a bank; the term does not include investment property or accounts evidenced by an instrument (UCC § 9-102(a)(29)). A deposit account is an asset type over which an entity can grant a security interest (www.practicallaw.com/7-382-3812) under Article 9 of the UCC.

A security interest in a deposit account cannot be perfected by filing a UCC-1 financing statement. For information on creation and perfection of security interests in deposit accounts, see Practice Note, UCC Creation, Perfection and Priority of Security Interests (www.practicallaw.com/6-381-0551).

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