§ 30-9A-340 — Effectiveness Of Right Of Recoupment Or Setoff Against Deposit Account

Montana § 30-9A-340

• Jurisdiction: Montana
• Title 30: TRADE AND COMMERCE
• Ch. 9A: UNIFORM COMMERCIAL CODE SECURED TRANSACTIONS
• Part 3: Perfection and Priority

Text

30-9A-340 . Effectiveness of right of recoupment or setoff against deposit account. (1) Except as otherwise provided in subsection (3), a bank with which a deposit account is maintained may exercise against a secured party that holds a security interest in the deposit account any right of recoupment or setoff.
(2) Except as otherwise provided in subsection (3), the application of this chapter 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.
(3) 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 that is perfected by control under 30-9A-104 (1)(c) if the setoff is based on a claim against the debtor.

Legislative History

En. Sec. 59, Ch. 305, L. 1999; Sec. 30-9-360 , MCA 1999; redes. 30-9A-340 by Code Commissioner, 2001.