RS 10:9-340 Rights of bank - Louisiana Statutes

SUBPART 4.  RIGHTS OF BANK

§9-340.  Effectiveness of right of compensation, recoupment, or set-off against deposit account

(a)  Exercise of compensation, 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 compensation, recoupment, or set-off against a secured party that holds a security interest in the deposit account.

(b)  Compensation, 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 R.S. 10:9-104(a)(3), if the set-off is based on a claim against the debtor.

Acts 2001, No. 128, §1, eff. July 1, 2001.