2014 Georgia Code
Title 11 - COMMERCIAL CODE
Article 9 - SECURED TRANSACTIONS
Part 3 - PERFECTION AND PRIORITY
Part 4 - RIGHTS OF BANK
§ 11-9-340 - Effectiveness of right of recoupment or set-off against deposit account.

GA Code § 11-9-340 (2014) What's This?

(a) Exercise of recoupment or set-off. Except as otherwise provided in subsection (c) of this Code section, 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) of this Code section, 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 paragraph (3) of subsection (a) of Code Section 11-9-104, if the set-off is based on a claim against the debtor.

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