§ 6A-9-340 - Effectiveness of right of recoupment or set-off against deposit account. - Rhode Island Statutes

SECTION 6A-9-340

   § 6A-9-340  Effectiveness of right ofrecoupment or set-off against deposit account. – (a) Exercise of recoupment or set-off. Except as otherwise provided insubsection (c), a bank with which a deposit account is maintained may exerciseany right of recoupment or set-off against a secured party that holds asecurity interest in the deposit account.

   (b) Recoupment or set-off not affected by securityinterest. Except as otherwise provided in subsection (c), the applicationof this chapter to a security interest in a deposit account does not affect aright of recoupment or set-off of the secured party as to a deposit accountmaintained with the secured party.

   (c) When set-off ineffective. The exercise by a bankof a set-off against a deposit account is ineffective against a secured partythat holds a security interest in the deposit account which is perfected bycontrol under § 6A-9-104(a)(3), if the set-off is based on a claim againstthe debtor.