Statute · New York Uniform Commercial Code
N.Y. U.C.C. Law § 9-340 — Effectiveness of Right of Recoupment or Set-off Against Deposit Account
N.Y. U.C.C. Law § 9-340
- Type
- Statute
- Source
- New York Uniform Commercial Code
- Jurisdiction
- New York
- Current through
- Nov 5, 2026 (NY Senate Open Legislation)
Section 9--340. Effectiveness of Right of Recoupment or Set-off Against
Citator
N.Y. U.C.C. Law § 9-340 — Effectiveness of Right of Recoupment or Set-off Against Deposit Account is in force in the current edition of the Code, and nothing recorded condemns it.
Section 9--340. Effectiveness of Right of Recoupment or Set-off Against
Deposit Account.
(a) Exercise of recoupment or set-off. 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) Recoupment or set-off not affected by security interest. 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) When set-off ineffective. 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.