2013 New Jersey Revised Statutes
Title 12A - COMMERCIAL TRANSACTIONS
Section 12A:9-340 - Effectiveness of right of recoupment or set-off against deposit account.
12A:9-340 Effectiveness of right of recoupment or set-off against deposit account.
12A: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 chapter 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 12A:9-104 (a) (3), if the set-off is based on a claim against the debtor.
L.2001, c.117, s.1; amended 2001, c.386, s.55.
Disclaimer: These codes may not be the most recent version. New Jersey 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.
