Termination of Deposit/Securities Account Control Agreement

Summary

This template is a notice of termination of a deposit account control agreement (DACA) or securities account control agreement (SACA) to be delivered to the relevant depositary bank/securities intermediary, as applicable. This template should be modified to conform to the terms of your transaction and to be consistent with any specific termination clauses set forth in the relevant DACA/SACA. This template includes practical guidance and drafting notes. Where a borrower has financing in place that is being terminated or refinanced, existing DACAs and SACAs will need to be terminated. This is accomplished when the secured party under the existing financing delivers a notice of termination of the control agreement(s) to the depository bank/securities intermediary in accordance with the specific termination provisions of the relevant DACA/SACA. For a thorough look at the procedures and tasks undertaken to release existing liens that are being terminated at closing, see Collateral Perfection and Release in the Closing Process. See Payoff Letter (Financing Transaction) for a payoff letter template to be delivered by an outgoing secured party which, among other things, releases liens and describes the arrangements to be made to sufficiently clear existing liens. Finally, see Deposit Account Control Agreement and Securities Account Control Agreement for examples of control agreements that perfect security interests in deposit and securities accounts.