{"data":{"id":"us-nj/n.j.-stat.-12a-9-340","jurisdiction":"us-nj","citation":"N.J. Stat. § 12A:9-340","heading":"Effectiveness of right of recoupment or set-off against deposit account.","body":"Effectiveness of Right of Recoupment or Set-off Against Deposit Account.\n(a)\tExercise of recoupment or set-off.  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.\n(b)\tRecoupment or set-off not affected by security interest.  Except as otherwise provided in subsection (c), the application of this chapter 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.\n(c)\tWhen set-off ineffective.  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 12A:9-104 (a) (3), if the set-off is based on a claim against the debtor.\nL.2001, c.117, s.1; amended 2001, c.386, s.55.","path":["TITLE 12A COMMERCIAL TRANSACTIONS"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"c6e8218484693c3e6fc6a282fe8cb8bcd232739867c440d92bd33e8b38323c32","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-12a-9-339","next":"us-nj/n.j.-stat.-12a-9-341"},"notice":"GroundRules: Original legal text. Not legal advice."}