Priority of security interests in deposit account The following rules govern priority among conflicting security interests in the same deposit account: (1) A security interest held by a secured party having control of the deposit account under section 9—104 of this title has priority over a conflicting security interest held by a secured party that does not have control. (2) Except as otherwise provided in subdivisions (3) and (4) of this section, security interests perfected by control under section 9—314 of this title rank according to priority in time of obtaining control. (3) Except as otherwise provided in subdivision (4) of this section, a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party. (4) A security interest perfected by control under subdivision 9—104(a)(3) of this title has priority over a security interest held by the bank with which the deposit account is maintained. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)
Vermont Legal Code