{"data":{"id":"us-dc/d.c.-code-28-2960","jurisdiction":"us-dc","citation":"D.C. Code § 28-2960","heading":"Recoupment or setoff.","body":"(a)\nExcept as provided in subsection (b) or (c) of this section, a bank may not exercise a right of recoupment or setoff against a special deposit.\n\n(b)\nAn account agreement may authorize the bank to debit the special deposit:\n(1)\nWhen the bank becomes obligated to pay a beneficiary, in an amount that does not exceed the amount necessary to discharge the obligation;\n(2)\nFor a fee assessed by the bank that relates to an overdraft in the special deposit account;\n(3)\nFor costs incurred by the bank that relate directly to the special deposit; or\n(4)\nTo reverse an earlier credit posted by the bank to the balance of the special deposit account, if the reversal occurs under an event or circumstance warranted under other law of the District governing mistake and restitution.\n\n(c)\nThe bank holding a special deposit may exercise a right of recoupment or setoff against an obligation to pay a beneficiary, even if the bank funds payment from the special deposit.","path":["Title 28. Commercial Instruments and Transactions. [Enacted title]","Chapter 29A. Uniform Special Deposits."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/28-2960","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"0f0c73991ef6a458753179eafb65940e3f1a6f6a3db651fbc60f4e3fe49714f2","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-28-2959","next":"us-dc/d.c.-code-28-2961"},"notice":"GroundRules: Original legal text. Not legal advice."}