2011 New Mexico Statutes
Chapter 55: Uniform Commercial Code
Article 9: Secured Transactions, 55-9-101 through 55-9-710
Section 55-9-340: Effectiveness of right of recoupment or set-off against deposit account.
55-9-340. Effectiveness of right of recoupment or set-off against deposit account.
(a) Except as otherwise provided in Subsection (c) of this 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) Except as otherwise provided in Subsection (c) of this section, the application of Chapter 55, Article 9 NMSA 1978 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) 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 Section 55-9-104 NMSA 1978, if the set-off is based on a claim against the debtor.
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