Subpart 4.
174 words·~1 min read·
/nc/chapter-25/4-9A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subpart 4. Rights of Banks.
§ 25-9-340. Effectiveness of right of recoupment or setoff against deposit account.
(a)Exercise of recoupment or setoff. - Except as otherwise provided in subsection
(c)of this section, a bank with which a deposit account is maintained may exercise any right of recoupment or setoff against a secured party that holds a security interest in the deposit account.
(b)Recoupment or setoff not affected by security interest. - Except as otherwise provided in subsection
(c)of this section, the application of this Article to a security interest in a deposit account does not affect a right of recoupment or setoff of the secured party as to a deposit account maintained with the secured party.
(c)When setoff ineffective. - The exercise by a bank of a setoff against a deposit account is ineffective against a secured party that holds a security interest in the deposit account which is perfected by control under G.S. 25-9-104(a)(3), if the setoff is based on a claim against the debtor. (2000-169, s. 1.)