§ 36-9-340. Effectiveness of right of recoupment or set-off against deposit account.
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/sc/title-36-commercial-code/chapter-9/commercial-code-secured-transactions/36-9-340·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 36-9-340. Effectiveness of right of recoupment or set-off against deposit account.
(a)Except as otherwise provided in subsection (c), 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), the application of this chapter 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 Section 36-9-104(a)(3), if the set-off is based on a claim against the debtor.