70A-9a-340. Effectiveness of right of recoupment or set-off against deposit account.
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70A-9a-340. Effectiveness of right of recoupment or set-off against deposit account.
(1)Except as otherwise provided in Subsection
(3), 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.
(2)Except as otherwise provided in Subsection
(3), 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.
(3)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 Subsection 70A-9a-104(1)(c) , if the set-off is based on a claim against the debtor.
Enacted by Chapter 252 , 2000 General Session