Broker Sweeps – we assist financial institutions, banks and broker dealers, to sweep funds to FDIC insured depository institutions to accrue interest and avoid the risks of holding uninsured deposits.

We regularly assist parties to implement Deposit Account Control Agreements (DACAs). A DACA is a three-party agreement between a borrower, a lender, and a bank that gives the lender control over the borrower’s deposit account. Generally, a DACA will allow the lender to secure a collateral interest in the borrower’s bank account and recover against funds in the account if the borrower defaults on the loan. There are two main types of DACAs: active and springing: (i) active DACAs (or “blocked DACAs”) give the lender immediate control over the account and the bank only accepts instructions from the lender. Springing DACAs allow the borrower exclusive control over the account unless and until there is a default; upon default the lender can send notice to the bank and take control of the borrower’s bank account. Typically, related loan agreements require the borrower to direct all of its customers to make payment into the designated account.