New York § 9-340 Effectiveness of Right of Recoupment or Set-off Against Deposit Account

New York Statutes

§ 9-340 — Effectiveness of Right of Recoupment or Set-off Against Deposit Account

New York § 9-340

JurisdictionNew York

Law UCCUniform Commercial Code

Part 3Perfection and Priority

Subpart 4Rights of Bank

Art. 9Secured Transactions

This text of New York § 9-340 (Effectiveness of Right of Recoupment or Set-off Against Deposit Account) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Uniform Commercial Code § 9-340 (2026).

Text

Section 9--340. Effectiveness of Right of Recoupment or Set-off Against\n                  Deposit Account.\n  (a) Exercise of recoupment or set-off. Except as otherwise provided in\nsubsection (c), a bank with which a deposit account is maintained may\nexercise any right of recoupment or set-off against a secured party that\nholds a security interest in the deposit account.\n  (b) Recoupment or set-off not affected by security interest. Except as\notherwise provided in subsection (c), the application of this article to\na security interest in a deposit account does not affect a right of\nrecoupment or set-off of the secured party as to a deposit account\nmaintained with the secured party.\n  (c) When set-off ineffective. The exercise by a bank of a set-off\nagainst a deposit account is in

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Section 9--340. Effectiveness of Right of Recoupment or Set-off Against\n Deposit Account.\n (a) Exercise of recoupment or set-off. Except as otherwise provided in\nsubsection (c), a bank with which a deposit account is maintained may\nexercise any right of recoupment or set-off against a secured party that\nholds a security interest in the deposit account.\n (b) Recoupment or set-off not affected by security interest. Except as\notherwise provided in subsection (c), the application of this article to\na security interest in a deposit account does not affect a right of\nrecoupment or set-off of the secured party as to a deposit account\nmaintained with the secured party.\n (c) When set-off ineffective. The exercise by a bank of a set-off\nagainst a deposit account is ineffective against a secured party that\nholds a security interest in the deposit account which is perfected by\ncontrol under Section 9--104(a)(3), if the set-off is based on a claim\nagainst the debtor.\n