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 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.
(2) Except as otherwise provided in Subsection (3), the application of this chapter 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.
(3) 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 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
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Last revised: Thursday, May 28, 2009