Cash Control

Despite all the aforementioned futures, the control and possession of cash is critical to protect investors by ensuring timely delivery of payments and mitigate against fraud and other bad acts.

Deposit Account Control Agreement

Maintaining control over the accounts where the cash flows related to all the underlying assets within the distinct asset pool is critical. As such, in the United States many banks offer bank accounts with a deposit account control agreement (DACA). DACAs enable investors, or a 3rd party acting on their behalf, to either have full control of all funds in the bank account at all times or be able to take control of the bank account under pre-determined scenarios. The latter of these two options is typically called a "Springing DACA". This provides investors greater comfort over having possession of the distinct asset pool via the true sale and is a requirement in order to perfect a security interest in the distinct asset pool.

Cash Sweeping

In the event some cash flows are received into accounts not under a DACA, the originator is required to transfer all cash received into the account within a short set time period into a designed DACA account for the benefit of investors. This type of arrangement is common where investors have both a springing DACA and a full DACA and the springing DACA is on a servicing account where the originator must maintain primary control for a variety of reasons.