2005 Illinois 810 ILCS 5/ Uniform Commercial Code. SubPart 4 - Rights Of Bank
(810 ILCS 5/Art. 9 Pt. 3 Sub. 4 heading)
SUBPART 4.
RIGHTS OF BANK
(810 ILCS 5/9‑340)
Sec. 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.
(Source: P.A. 91‑893, eff. 7‑1‑01.)
|
(810 ILCS 5/9‑341)
Sec. 9‑341.
Bank's rights and duties with respect to deposit account.
Except as otherwise provided in Section 9‑340(c), and unless the bank otherwise
agrees in an authenticated record, a bank's rights and duties with respect to a
deposit account maintained with the bank are not terminated, suspended, or
modified by:
(1) the creation, attachment, or perfection of a |
|
security interest in the deposit account;
|
|
(2) the bank's knowledge of the security interest; or
(3) the bank's receipt of instructions from the
|
|
|
(Source: P.A. 91‑893, eff. 7‑1‑01.)
|
(810 ILCS 5/9‑342)
Sec. 9‑342.
Bank's right to refuse to enter into or disclose existence of
control agreement. This Article does not require a bank to enter into an
agreement of the kind described in Section 9‑104(a)(2), even if its customer so
requests or directs. A bank that has entered into such an agreement is not
required
to confirm the existence of the agreement to another person unless requested to
do
so by its customer.
(Source: P.A. 91‑893, eff. 7‑1‑01.)
|
Disclaimer: These codes may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
