Statute · California Commercial Code
Cal. Com. Code § 9340 — Perfection and Priority
Cal. Com. Code § 9340
- Type
- Statute
- Source
- California Commercial Code
- Jurisdiction
- California
- Date
- 2000-01-01
- Current through
- Nov 2, 2026 (California Legislative Counsel)
(a) Except as otherwise provided in subdivision (c), 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.
Citator
Cal. Com. Code § 9340 — Perfection and Priority is in force in the current edition of the Code, and nothing recorded condemns it.
(a) Except as otherwise provided in subdivision (c), 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.
(b) Except as otherwise provided in subdivision (c), the application of this division 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.
(c) 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 which is perfected by control under paragraph (3) of subdivision (a) of Section 9104, if the setoff is based on a claim against the debtor.