Massachusetts General Laws ch. 106 sec. 9-327 – Priority of Security Interests in Deposit Account
Section 9–327. The following rules govern priority among conflicting security interests in the same deposit account:
Terms Used In Massachusetts General Laws ch. 106 sec. 9-327
- Interests: includes any form of membership in a domestic or foreign nonprofit corporation. See Massachusetts General Laws ch. 156D sec. 11.01
(1) A security interest held by a secured party having control of the deposit account under Section 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 paragraphs (3) and (4), security interests perfected by control under Section 9–314 rank according to priority in time of obtaining control.
(3) Except as otherwise provided in paragraph (4), 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 9–104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.