§9-340. Effectiveness of right of recoupment or set-off against deposit account

Link to law: http://legislature.vermont.gov/statutes/section/09A/009/00340
Published: 2015

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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

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 9-104(a)(3), if the set-off is based on a

claim against the debtor. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1,

2001.)
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