2022 Iowa Code
Title XIII - COMMERCE
Chapter 554 - UNIFORM COMMERCIAL CODE
Section 554.9340 - Effectiveness of right of recoupment or setoff against deposit account.
554.9340 Effectiveness of right of recoupment or setoff against deposit account.
1. Exercise of recoupment or setoff. Except as otherwise provided in subsection 3, 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.
2. Recoupment or setoff not affected by security interest. Except as otherwise provided in subsection 3, the application of this Article 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.
3. When setoff ineffective. 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 section 554.9104, subsection 1, paragraph “c”, if the setoff is based on a claim against the debtor.
2000 Acts, ch 1149, §60, 187
Referred to in §554.9109, 554.9341
