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The Deposit Account Control Agreement (DACA) is a crucial security document used in Malaysian financing transactions where deposit accounts serve as collateral. It is commonly required in corporate lending, project finance, and structured finance transactions to perfect a security interest in deposit accounts under Malaysian law. The agreement complies with the Financial Services Act 2013 and related Malaysian banking regulations, establishing the mechanism by which a secured party can obtain and exercise control over the deposit account(s). The DACA details the rights and obligations of the account holder, secured party, and depository bank, including procedures for account access, instructions, and the implementation of exclusive control following a default or enforcement event. This document is particularly important in Malaysia's banking sector, where it provides a standardized approach to deposit account security arrangements while addressing specific local regulatory requirements.

1. Parties: Identifies the three main parties: Account Holder, Secured Party, and Depository Bank

2. Background: Explains the context of the agreement, including reference to any underlying security agreement

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

4. Control and Security Interest: Establishes the secured party's control over the deposit account and confirms the security interest

5. Bank's Rights and Responsibilities: Details the bank's obligations regarding account access, instructions, and compliance with control notices

6. Account Holder's Rights and Restrictions: Specifies the account holder's permitted activities and limitations regarding the deposit account

7. Instructions and Notices: Procedures for giving and acting on instructions, including exclusive control notices

8. Representations and Warranties: Key statements and guarantees from all parties regarding authority, account ownership, and compliance

9. Fees and Expenses: Details of bank's fees and allocation of costs related to the agreement

10. Indemnification: Provisions for indemnifying the bank and other parties for actions taken under the agreement

11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

12. Miscellaneous: Standard provisions including governing law, jurisdiction, amendments, and notices