Arizona § 6-261 Recoupment or setoff

Arizona Statutes

§ 6-261 — Recoupment or setoff

Arizona § 6-261

Title 6Arizona Revised Statutes

Ch. 2BANK ORGANIZATION AND REGULATION

Art. 5.Special Deposits

This text of Arizona § 6-261 (Recoupment or setoff) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 6-261 (2026).

Text

A.Except as provided in subsection B or C of this section, a bank may not exercise a right of recoupment or setoff against a special deposit.

B.An account agreement may authorize a bank to debit the special deposit:

1.When the bank becomes obligated to pay a beneficiary, in an amount that does not exceed the amount necessary to discharge the obligation;

2.For a fee assessed by the bank that relates to an overdraft in the special deposit account;

3.For costs incurred by the bank that relate directly to the special deposit; or

4.To reverse an earlier credit posted by the bank to the balance of the special deposit account, if the reversal occurs under an event or circumstance warranted under other law of this state governing mistake and restitution.

C.The bank holding a special d

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A. Except as provided in subsection B or C of this section, a bank may not exercise a right of recoupment or setoff against a special deposit.

B. An account agreement may authorize a bank to debit the special deposit:

1. When the bank becomes obligated to pay a beneficiary, in an amount that does not exceed the amount necessary to discharge the obligation;

2. For a fee assessed by the bank that relates to an overdraft in the special deposit account;

3. For costs incurred by the bank that relate directly to the special deposit; or

4. To reverse an earlier credit posted by the bank to the balance of the special deposit account, if the reversal occurs under an event or circumstance warranted under other law of this state governing mistake and restitution.

C. The bank holding a special deposit may exercise a right of recoupment or setoff against an obligation to pay a beneficiary, even if the bank funds payment from the special deposit.