What gives a bank priority over other secured parties in a deposit account?

The priority of a secured party in a deposit account is determined by their ability to exercise control over that account, rather than simply maintaining it. In secured transactions, control can be established through specific means such as an agreement with the bank, which is often documented, but just maintaining the account does not inherently provide the necessary legal framework or power to assert priority.

The concept of "control" is essential because the Uniform Commercial Code (UCC) provides that the secured party with control over the deposit account has priority over others. This can be achieved by the secured party being the bank where the account is held or by obtaining a control agreement.

Therefore, obtaining control through a properly structured agreement or action is what grants priority, and not merely the act of maintaining the account itself. Control enables the secured party to access the funds and manage the account, which is critical in establishing the legal right to claim those funds over other secured parties.