2016 Vermont Statutes
Title 9A - Uniform Commercial Code
Article 9 - Secured Transactions
§ 9-340 Effectiveness of right of recoupment or set-off against deposit account
§ 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 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) 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 subdivision 9-104(a)(3) of this title, if the set-off is based on a claim against the debtor. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)
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