§12A-1-9-340. Effectiveness of right of recoupment or set-off
169 words·~1 min read·
/ok/title-12a-uniform-commercial-code/12a-1-9-340·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
against deposit account.
EFFECTIVENESS OF RIGHT OF RECOUPMENT OR
SET-OFF AGAINST DEPOSIT ACCOUNT
(a)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 set-off against a secured party that holds a security interest in the deposit account.
(b)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 set-off of the secured party as to a deposit account maintained with the secured party.
(c)The exercise by a bank of a set-off 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
paragraph
(3)of subsection
(a)of Section 1-9-104 of this title, if the set-off is based on a claim against the debtor. Added by Laws 2000, c. 371, § 67, eff. July 1, 2001.