Alabama § 7-9A-340 Effectiveness of Right of Recoupment or Set-Off Against Deposit Account

Alabama Statutes

§ 7-9A-340 — Effectiveness of Right of Recoupment or Set-Off Against Deposit Account

Alabama·Title 7 Commercial Code·Art. 9A Secured Transactions·Div. 4 Rights of Bank·Part 3 Perfection and Priority

(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 S

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(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 7-9A-104(a)(3), if the set-off is based on a claim against the debtor.

Alabama § 7-9A-340 (Effectiveness of Right of Recoupment or Set-Off Against Deposit Account) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.