Securities Account Control Agreement (SACA) | Practical Law
Securities Account Control Agreement (SACA)
Enter to open, tab to navigate, enter to select
US Home
Global Home
NEW
Sign in
Sign in
All content
Search:
Search Westlaw
Search Tips
Advanced
Securities Account Control Agreement (SACA)
Practical Law Glossary Item 4-382-3804
(Approx. 2 pages)
Glossary
Securities Account Control Agreement (SACA)
The agreement in which a debtor (known as the
entitlement holder
),
secured party
, and
securities intermediary
maintaining the
securities account
have agreed that the securities intermediary will comply with instructions (known as
entitlement orders
) originated by the secured party without further consent by the debtor (
UCC § 8-106(d)
). The securities account control agreement enables the secured party to obtain
control
over the
security entitlement
, and therefore the securities account, and so enables its
security interest
in the securities account to be
perfected
(
UCC § 9-106
). It is an example of a
collateral document
entered into by a debtor to secure obligations under a loan agreement.
For further information, see
Practice Note, Security Interests: Investment Property
.