Effectiveness of Right of Recoupment or Set-Off Against Deposit Account
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Law
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Georgia Code
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Commercial Code
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Secured Transactions
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Perfection and Priority
- Effectiveness of Right of Recoupment or Set-Off Against Deposit Account
- Exercise of recoupment or set-off. Except as otherwise provided in subsection (c) of this Code 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.
- Recoupment or set-off not affected by security interest. Except as otherwise provided in subsection (c) of this Code 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.
- 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 paragraph (3) of subsection (a) of Code Section 11-9-104, if the set-off is based on a claim against the debtor.
(Code 1981, §11-9-340, enacted by Ga. L. 2001, p. 362, § 1.)
RESEARCH REFERENCES
U.L.A.
- Uniform Commercial Code (U.L.A.) § 9-340.
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