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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.)