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Additional duties of secured party having control of collateral. (a) This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value. (b) Within 10 days after receiving a signed demand by the debtor: (1) A secured party having control of a deposit account under § 28:9-104(a)(2) shall send to the bank with which the deposit account is maintained an authenticated statement that releases the bank from any further obligation to comply with instructions originated by the secured party; (2) A secured party having control of a deposit account under § 28:9-104(a)(3) shall: (A) Pay the debtor the balance on deposit in the deposit account; or (B) Transfer the balance on deposit into a deposit account in the debtor’s name; (3) A secured party, other than a buyer, having control under § 28:9-105 of an authoritative electronic copy of a record evidencing chattel paper shall transfer control of the electronic copy to the debtor or a person designated by the debtor; (4) A secured party having control of investment property under § 28:8-106(d)(2) or 28:9-106(b) shall

shall transfer control of the electronic copy to the debtor or a person designated by the debtor; (4) A secured party having control of investment property under § 28:8-106(d)(2) or 28:9-106(b) shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party; (5) A secured party having control of a letter-of-credit right under § 28:9-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party a signed release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party; (6) A secured party having control under § 28:7-106 of an authoritative electronic copy of an electronic document of title shall transfer control of the electronic copy to the debtor or a person designated by the debtor; (7) A secured party having control under § 28:9-105A of electronic money shall transfer control of the electronic money to

l of the electronic copy to the debtor or a person designated by the debtor; (7) A secured party having control under § 28:9-105A of electronic money shall transfer control of the electronic money to the debtor or a person designated by the debtor; and (8) A secured party having control under § 28:12-105 of a controllable electronic record, other than a buyer of a controllable account or controllable payment intangible evidenced by the controllable electronic record, shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor. (Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576; Apr. 27, 2013, D.C. Law 19-299, § 11(d), 60 DCR 2634; Apr. 20, 2024, D.C. Law 25-158, § 2(j)(9), 71 DCR 2265.) Section References This section is referenced in § 28:9-625. Effect of Amendments The 2013 amendment by D.C. Law 19-299 added (b)(6); and made related changes. Uniform Commercial Code Comment 1. Source. New. 2. Scope and Purpose. This section imposes duties on a secured party who has control of a deposit account, electronic chattel paper, investment property, or a letter-of-credit right.

1. Source. New. 2. Scope and Purpose. This section imposes duties on a secured party who has control of a deposit account, electronic chattel paper, investment property, or a letter-of-credit right. The duty to terminate the secured party’s control is analogous to the duty to file a termination statement, imposed by Section 9-513. Under subsection (a), it applies only when there is no outstanding secured obligation and the secured party is not committed to give value. The requirements of this section can be varied by agreement under Section 1-102(3). For example, a debtor could by contract agree that the secured party may comply with subsection (b) by releasing control more than 10 days after demand. Also, duties under this section should not be read to conflict with the terms of the collateral itself. For example, if the collateral is a time deposit account, subsection (b)(2) should not require a secured party with control to make an early withdrawal of the funds (assuming that were possible) in order to pay them over to the debtor or put them in an account in the debtor’s name. 3. Remedy for Failure to Relinquish Control.

ake an early withdrawal of the funds (assuming that were possible) in order to pay them over to the debtor or put them in an account in the debtor’s name. 3. Remedy for Failure to Relinquish Control. If a secured party fails to comply with the requirements of subsection (b), the debtor has the remedy set forth in Section 9-625(e). This remedy is identical to that applicable to failure to provide or file a termination statement under Section 9-513. 4. Duty to Relinquish Possession. Although Section 9-207 addresses directly the duties of a secured party in possession of collateral, that section does not require the secured party to relinquish possession when the secured party ceases to hold a security interest. Under common law, absent agreement to the contrary, the failure to relinquish possession of collateral upon satisfaction of the secured obligation would constitute a conversion. Inasmuch as problems apparently have not surfaced in the absence of statutory duties under former Article 9 and the common-law duty appears to have been sufficient, this Article does not impose a statutory duty to relinquish possession.

§ 28-9-208