2006 Minnesota Code
Chapters 324 - 338 Trade Regulations, Consumer Protection
Chapter 336 Uniform Commercial Code
Section 336.9-340 EFFECTIVENESS OF RIGHT OF RECOUPMENT OR SET-OFF AGAINST DEPOSIT ACCOUNT.
336.9-340 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
336.9-104(a)(3), if the set-off is based on a claim against
the debtor.
History: 2000 c 399 art 1 s 60
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