70A-9a-340 - Effectiveness of right of recoupment or set-off against deposit account.
70A-9a-340. Effectiveness of right of recoupment or set-off against deposit account.
(1) Except as otherwise provided in Subsection (3), a bank with which a deposit accountis maintained may exercise any right of recoupment or set-off against a secured party that holds asecurity interest in the deposit account.
(2) Except as otherwise provided in Subsection (3), the application of this chapter to asecurity interest in a deposit account does not affect a right of recoupment or set-off of thesecured party as to a deposit account maintained with the secured party.
(3) 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 controlunder Subsection 70A-9a-104(1)(c), if the set-off is based on a claim against the debtor.
Enacted by Chapter 252, 2000 General Session