{"data":{"id":"us-ky/krs-355.9-340","jurisdiction":"us-ky","citation":"KRS 355.9-340","heading":"Effectiveness of right of recoupment or set-off against deposit account.","body":"(1) Except as otherwise provided in subsection (3) of this section, a bank with which a\ndeposit account is maintained may exercise any right of recoupment or set -off\nagainst a secured party that holds a security interest in the deposit account.\n(2) Except as otherwise provided in subsection (3) of this section, the application of\nthis article to a security interest in a deposit account does not affect a right of\nrecoupment or set -off of the secured party as to a deposit account maintained with\nthe secured party.\n(3) The exercise by a bank of a set -off against a deposit account is ineffective against a\nsecured party that holds a security interest in the deposit account which is perfected\nby control under KRS 355.9 -104(1)(c), if the set-off is based on a claim  against the\ndebtor.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33793","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"51139899563139bb6855cb3ba469f956355a9b404b1c480fdae6f3a203be1c1f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-339","next":"us-ky/krs-355.9-341"},"notice":"GroundRules: Original legal text. Not legal advice."}