§ 9-340. 9-340
147 words·~1 min read·
/us/ucc/a9/s9-340A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)[Exercise of recoupment or set-off.] 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)[Recoupment or setoff not affected by security interest.] Except as otherwise provided in subsection (c), 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)[When set-off ineffective.] 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 9-104(a) (3), if the set-off is based on a claim against the debtor .