5ASecurity given over a person’s right to require payment or performance of an obligation

5A Security given over a person’s right to require payment or performance of an obligation

If a person owes payment or performance of an obligation to another person (an account holder): (a) the account holder may give security over the account holder’s right to require the payment or performance of the obligation; and (b) the persons to whom security may be given include the person who owes the payment or the performance of the obligation to the account holder.

Note: Example: A person holds an account with a bank. The person may give security to the bank over the person’s right to require the bank to pay the person money from the account.