Section 9-340 - Effectiveness of right of recoupment or set-off against deposit account. - Maryland Statutes

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

(a)  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)  Except as otherwise provided in subsection (c), the application of this article 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)  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 § 9-104 (a) (3), if the set-off is based on a claim against the debtor. 
 

[1999, ch. 282, § 2.]