SubPart 4 - Rights Of Bank - Illinois Statutes

State Codes and Statutes

Statutes > Illinois > Chapter810 > 2301 > 081000050HArt_9_Pt_3_Sub_4

(810 ILCS 5/Art. 9 Pt. 3 Sub. 4 heading)SUBPART 4. RIGHTS OF BANK

    (810 ILCS 5/9‑340)
    Sec. 9‑340. Effectiveness of right of recoupment or set‑off against deposit account.

(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 set‑off 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.

(Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑341)
Sec. 9‑341. Bank's rights and duties with respect to deposit account.

Except as otherwise provided in Section 9‑340(c), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by:

(1) the creation, attachment, or perfection of a

security interest in the deposit account;

(2) the bank's knowledge of the security interest; or
(3) the bank's receipt of instructions from the

secured party.

(Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑342)
Sec. 9‑342.

Bank's right to refuse to enter into or disclose existence of control agreement. This Article does not require a bank to enter into an agreement of the kind described in Section 9‑104(a)(2), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreement to another person unless requested to do so by its customer.

(Source: P.A. 91‑893, eff. 7‑1‑01.)

State Codes and Statutes

Statutes > Illinois > Chapter810 > 2301 > 081000050HArt_9_Pt_3_Sub_4

(810 ILCS 5/Art. 9 Pt. 3 Sub. 4 heading)SUBPART 4. RIGHTS OF BANK

    (810 ILCS 5/9‑340)
    Sec. 9‑340. Effectiveness of right of recoupment or set‑off against deposit account.

(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 set‑off 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.

(Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑341)
Sec. 9‑341. Bank's rights and duties with respect to deposit account.

Except as otherwise provided in Section 9‑340(c), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by:

(1) the creation, attachment, or perfection of a

security interest in the deposit account;

(2) the bank's knowledge of the security interest; or
(3) the bank's receipt of instructions from the

secured party.

(Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑342)
Sec. 9‑342.

Bank's right to refuse to enter into or disclose existence of control agreement. This Article does not require a bank to enter into an agreement of the kind described in Section 9‑104(a)(2), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreement to another person unless requested to do so by its customer.

(Source: P.A. 91‑893, eff. 7‑1‑01.)

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Illinois > Chapter810 > 2301 > 081000050HArt_9_Pt_3_Sub_4

(810 ILCS 5/Art. 9 Pt. 3 Sub. 4 heading)SUBPART 4. RIGHTS OF BANK

    (810 ILCS 5/9‑340)
    Sec. 9‑340. Effectiveness of right of recoupment or set‑off against deposit account.

(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 set‑off 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.

(Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑341)
Sec. 9‑341. Bank's rights and duties with respect to deposit account.

Except as otherwise provided in Section 9‑340(c), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by:

(1) the creation, attachment, or perfection of a

security interest in the deposit account;

(2) the bank's knowledge of the security interest; or
(3) the bank's receipt of instructions from the

secured party.

(Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑342)
Sec. 9‑342.

Bank's right to refuse to enter into or disclose existence of control agreement. This Article does not require a bank to enter into an agreement of the kind described in Section 9‑104(a)(2), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreement to another person unless requested to do so by its customer.

(Source: P.A. 91‑893, eff. 7‑1‑01.)