| | | Example 2: Debtor maintains a deposit account with Bank A. | | The deposit account is subject to a perfected security interest | | in favor of Lender. At Bank B's suggestion, Debtor moves the | | funds from the account at Bank A to Debtor's deposit account with | | Bank B. Unless Bank B acted in collusion with Debtor in | | violating Lender's rights, Bank B takes the funds (the credits | | running in favor of Bank B) free from Lender's security interest. | | See subsection (b) [Maine cite subsection (2)]. However, | | inasmuch as the deposit account maintained with Bank B | | constitutes the proceeds of the deposit account at Bank A, | | Lender's security interest would attach to that account as | | proceeds. See Section 9-315 [Maine cite section 9-1315]. |
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| | | Subsection (b) [Maine cite subsection (2)] also would apply | | if, in the example, Bank A debited Debtor's deposit account in | | exchange for the issuance of Bank A's cashier's check. Lender's | | security interest would attach to the cashier's check as proceeds | | of the deposit account, and the rules applicable to instruments | | would govern any competing claims to the cashier's check. See, | | e.g., Sections 3-306, 9-322, 9-330, 9-331 [Maine cite sections 9- | | 1322, 9-1330, 9-1331]. |
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| | | If Debtor withdraws money (currency) from an encumbered | | deposit account and transfers the money to a third party, then | | subsection (a) [Maine cite subsection (1)], to the extent not | | displaced by federal law relating to money, applies. It contains | | the same rule as subsection (b) [Maine cite subsection (2)]. |
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| | | Subsection (b) [Maine cite subsection (2)] applies to | | transfers of funds from a deposit account; it does not apply to | | transfers of the deposit account itself or of an interest | | therein. For example, this section does not apply to the | | creation of a security interest in a deposit account. Competing | | claims to the deposit account itself are dealt with by other | | Article 9 [Maine cite Article 9-A] priority rules. See Sections | | 9-317(a), 9-327, 9-340, 9-341 [Maine cite section 9-1317, | | subsection (1), section 9-1327, 9-1340, 9-1341]. Similarly, a | | corporate merger normally would not result in a transfer of funds | | from a deposit account. Rather, it might result in a transfer of | | the deposit account itself. If so, the normal rules applicable | | to transferred collateral would apply; this section would not. |
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| | | 3. Policy. Broad protection for transferees helps to ensure | | that security interests in deposit accounts do not impair the | | free flow of funds. It also minimizes the likelihood that a | | secured party will enjoy a claim to whatever the transferee | | purchases with the funds. Rules concerning recovery of payments | | traditionally have placed a high value on finality. The | | opportunity to upset a completed transaction, or even to place a | | completed transaction | | in jeopardy by bringing suit against the |
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