8.9A-340 - A-340. Effectiveness of right of recoupment or set-off against deposit account. - Virginia Statutes

§ 8.9A-340. Effectiveness of right of recoupment or set-off against depositaccount.

(a) Exercise of recoupment or set-off. Except as otherwise provided insubsection (c), a bank with which a deposit account is maintained mayexercise any right of recoupment or set-off against a secured party thatholds a security interest in the deposit account.

(b) Recoupment or set-off not affected by security interest. Except asotherwise provided in subsection (c), the application of this title to asecurity interest in a deposit account does not affect a right of recoupmentor set-off of the secured party as to a deposit account maintained with thesecured party.

(c) When set-off ineffective. The exercise by a bank of a set-off against adeposit account is ineffective against a secured party that holds a securityinterest in the deposit account which is perfected by control under §8.9A-104 (a) (3), if the set-off is based on a claim against the debtor.

(2000, c. 1007.)