How do I perfect a security interest in deposit accounts under Revised Article 9?
In order to perfect a security interest in a deposit account under Revised Article 9, a Secured Creditor must (a) arrange for the Debtor to transfer the account into the name of the Secured Creditor, (b) enter into a control agreement with depository institution where the account is located, or (c) serve as the depository institution where the deposit account is maintained. Will Revised Article 9 make my life any easier? Yes. With the newly created central filing system for all collateral except fixtures and certain other collateral closely tied to real estate, lenders will no longer need to keep track of their collateral in various states or incur the expense of filing in multiple states. As a result, inadvertent or fraudulent movement of collateral by a Debtor will no longer be an issue of concern. In Pennsylvania, for example, filings at the Prothonotary level are will no longer be required. In addition, the signature of Debtors on financing statements will no longer be required to
