Ch. 95

2004 LAWS OF MARYLAND

(B)    The collateral is not a certificated security and is in the
possession of the secured party under § 9-313 pursuant to the debtor's security
agreement;

(C)    The collateral is a certificated security in registered form and
the security certificate has been delivered to the secured party under § 8-301 of this
article pursuant to the debtor's security agreement; or

(D)    The collateral is deposit accounts, electronic chattel paper,
investment property, [or] letter-of-credit rights, OR ELECTRONIC DOCUMENTS, and
the secured party has control under [§ 9-104, § 9-105, § 9-106, or § 9-107] § 7-106, §
9-104, § 9-105, § 9-106, OR § 9-107 pursuant to the debtor's security agreement.

9-207.

(c) Except as otherwise provided in subsection (d), a secured party having
possession of collateral or control of collateral under [§ 9-104, § 9-105, § 9-106, or §
9-107] § 7-106, § 9-104, § 9-105, § 9-106, OR § 9-107:

(1)     May hold as additional security any proceeds, except money or funds,
received from the collateral;

(2)     Shall apply money or funds received from the collateral to reduce the
secured obligation, unless remitted to the debtor; and

(3)     May create a security interest in the collateral.
9-208.

(b) Within 10 days after receiving an authenticated demand by the debtor:

(1)     A secured party having control of a deposit account under §
9-104(a)(2) shall send to the bank with which the deposit account is maintained an
authenticated statement that releases the bank from any further obligation to comply
with instructions originated by the secured party;

(2)     A secured party having control of a deposit account under §
9-104(a)(3) shall:

(A)    Pay the debtor the balance on deposit in the deposit account; or

(B)    Transfer the. balance on deposit into a deposit account in the
debtor's name;

(3)     A secured party, other than a buyer, having control of electronic
chattel paper under § 9-105 shall:

(A)    Communicate the authoritative copy of the electronic chattel
paper to the debtor or its designated custodian;

(B)     If the debtor designates a custodian that is the designated
custodian with which the authoritative copy of the electronic chattel paper is
maintained for the secured party, communicate to the custodian an authenticated
record releasing the designated custodian from any further obligation to comply with

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