Effectiveness of right of recoupment or set-off against deposit account.

Checkout our iOS App for a better way to browser and research.

(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.

  1. Except as otherwise provided in subsection (c) of this section, the application of thisarticle 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.

  2. The exercise by a bank of a set-off against a deposit account is ineffective against asecured party that holds a security interest in the deposit account which is perfected by control under section 4-9-104 (a)(3), if the set-off is based on a claim against the debtor.

Source: L. 2001: Entire article R&RE, p. 1370, § 1, effective July 1.


Download our app to see the most-to-date content.