California § 9340. 9340. (Added by Stats. 1999, Ch. 991, Sec. 35.)

California Statutes

§ 9340. — 9340. (Added by Stats. 1999, Ch. 991, Sec. 35.)

California § 9340.

Code COMCommercial Code - COM

Div. 9.DIVISION 9. SECURED TRANSACTIONS

Ch. 3.CHAPTER 3. Perfection and Priority

This text of California § 9340. (9340. (Added by Stats. 1999, Ch. 991, Sec. 35.)) is published on Counsel Stack Legal Research, covering California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Cal. Commercial Code - COM Code § 9340. (2026).

Text

(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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(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.

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.

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California § 9340., Counsel Stack Legal Research, https://law.counselstack.com/statute/ca/COM/9340..