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New Jersey Statutes, Title: 12A, COMMERCIAL TRANSACTIONS
Chapter 9:
Section: 12A:9-340: Effectiveness of right of recoupment or set-off against deposit account.
12A:9-340. Effectiveness of Right of Recoupment or Set-off Against Deposit Account.
(a) Exercise of recoupment or set-off. Except as otherwise provided in subsection (c), a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account.
(b) Recoupment or set-off not affected by security interest. Except as otherwise provided in subsection (c), the application of this chapter to a security interest in a deposit account does not affect a right of recoupment or set-off of the secured party as to a deposit account maintained with the secured party.
(c) When set-off ineffective. The exercise by a bank of a set-off 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 12A:9-104 (a) (3), if the set-off is based on a claim against the debtor.
L.2001, c.117, s.1; amended 2001, c.386, s.55.
This section added to the Rutgers Database: 2013-06-10 16:36:30.
Older versions of 12a:9-340 (if available):
Court decisions that cite this statute:
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