§490:9-340 - Effectiveness of right of recoupment or set-off against deposit account.
Subpart 4.
Rights of Bank
§490:9-340 Effectiveness of right of
recoupment or set-off against deposit account. (a) 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) 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) 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 490:9-104(a)(3), if the set-off is based on a claim against the debtor.
[L 2000, c 241, pt of §1]