California Statutes
§ 9340. — 9340. (Added by Stats. 1999, Ch. 991, Sec. 35.)
California·Code COM Commercial Code - COM·Div. 9. DIVISION 9. SECURED TRANSACTIONS·Ch. 3. CHAPTER 3. Perfection and Priority
(a)Except as otherwise provided in subdivision (c), a bank with which a deposit account is maintained may exercise any right of recoupment or setoff against a secured party that holds a security interest in the deposit account.
(b)Except as otherwise provided in subdivision (c), the application of this division to a security interest in a deposit account does not affect a right of recoupment or setoff of the secured party as to a deposit account maintained with the secured party.
(c)The exercise by a bank of a setoff 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 subdivision (a) of Section 9104, if the setoff is based on a claim against the debtor.
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California § 9340. (9340. (Added by Stats. 1999, Ch. 991, Sec. 35.)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.
Legislative History
Added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.