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The Deposit Account Control Agreement (DACA) is a crucial document in secured financing transactions under Philippine law, commonly used when a lender requires security over a borrower's deposit accounts. It creates a three-way relationship between the account holder (typically a borrower), a secured party (usually a lender), and a depository bank, establishing the secured party's control over the specified deposit accounts as collateral. The agreement operates within the framework of the Philippines' General Banking Law of 2000 (Republic Act No. 8791) and Personal Property Security Act (Republic Act No. 11057), addressing aspects such as account access, control rights, operational procedures, and regulatory compliance requirements. This document is particularly important in project finance, corporate lending, and other secured transactions where deposit accounts form part of the collateral package. The DACA ensures the secured party's ability to control the account upon specified events while providing clear guidelines for the bank's role and responsibilities.

1. Parties: Identifies the three main parties: (1) Depositor/Account Holder, (2) Secured Party/Lender, and (3) Depository Bank

2. Background: Explains the context of the agreement, including reference to the underlying security agreement and the purpose of the control arrangement

3. Definitions: Defines key terms used throughout the agreement, including Account, Control, Notice of Exclusive Control, etc.

4. Deposit Account: Identifies and describes the controlled account(s) and their nature

5. Control of Deposit Account: Establishes the mechanism of control and rights of the secured party over the deposit account

6. Bank's Rights and Responsibilities: Details the obligations and rights of the depository bank in maintaining and operating the controlled account

7. Representations and Warranties: Contains statements of fact and assurances from all parties

8. Security Interest and Rights: Describes the secured party's security interest in the account and related rights

9. Instructions and Notices: Procedures for giving instructions regarding the account and sending notices between parties

10. Fees and Expenses: Specifies fees payable to the bank and allocation of expenses

11. Indemnification: Provisions for indemnifying the bank and other parties as applicable

12. Term and Termination: Duration of the agreement and circumstances/procedures for termination

13. Miscellaneous: Standard boilerplate provisions including governing law, amendments, counterparts, etc.