Document ID: chunk:federal_register_of_legislation:C2011A00035:clause:2_341a
Version: federal_register_of_legislation:C2011A00035
Segment Type: clause
Provision Reference: sch 2 cl 341A
Character Range: 28236–29343

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.

[Minister's second reading speech made in—
House of Representatives on 23 February 2011
Senate on 22 March 2011]
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