Article 9-A: TRANSACTIONS HEADING: PL 1999, C. 699, PT. A, §2 (NEW)
Part 3: PERFECTION AND PRIORITY HEADING: PL 1999, C. 699, PT. A, §2 (NEW)
Subpart 4: RIGHTS OF BANK HEADING: PL 1999, C. 699, PT. A, §2 (NEW)
§9-1340. Effectiveness of right of recoupment or setoff against deposit account
(1). Except as otherwise provided in subsection (3), 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.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(2). Except as otherwise provided in subsection (3), the application of this Article 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.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(3). 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 9-1104, subsection (1), paragraph (c), if the setoff
is based on a claim against the debtor.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
SECTION HISTORY
1999, c. 699, §A2 (NEW).
1999, c. 699, §A4 (AFF).
Data for this page extracted on 11/02/2009 01:51:30.