47-9340

47-9340. Effectiveness of right of recoupment
or setoff against deposit account

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 setoff against a
secured party that holds a security interest in the deposit account.

B. Except as otherwise provided in subsection C of this section, the application of
this chapter to a security interest in a deposit account does not affect a right of
recoupment or setoff of the secured party as to a deposit account maintained with the
secured party.

C. The exercise by a bank of a setoff against a deposit account is ineffective
against a secured party that holds a security interest in the deposit account that is
perfected by control under section 47-9104, subsection A, paragraph 3, if the setoff is
based on a claim against the debtor.