How is control established over nonconsumer deposit accounts by a non-bank secured party?

Control over nonconsumer deposit accounts is established by a non-bank secured party by putting the deposit account in its name. This method is recognized under UCC Article 9, which provides for a secured party to gain control of a deposit account when the account is majority owned, in the name of the secured party, or when the bank agrees that the secured party has control over the account. By having the account in its name, the non-bank secured party can exercise rights over the funds and is positioned to assert its security interest effectively.

Other options do not align with how control is established as per UCC guidelines. For example, merely holding physical cash does not confer control over the deposit account itself. Taking full ownership of the bank is impractical and irrelevant, as simply owning the bank does not translate to control over a specific deposit account. Requiring the debtor to close the account does not grant control; rather, it may complicate the relationship with the bank and the debtor's funds. Thus, option B accurately reflects the legal framework governing secured transactions and control over deposit accounts.