Sec. 42a-9-340. Effectiveness of right of recoupment or set-off against deposit account.
Sec. 42a-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 subdivision (3) of subsection (a) of section 42a-9-104 if the set-off is
based on a claim against the debtor.
(P.A. 01-132, S. 60.)