{"data":{"id":"us-ny/n.y.-uniform-commercial-code-law-9-340","jurisdiction":"us-ny","citation":"N.Y. Uniform Commercial Code Law § 9-340","heading":"Effectiveness of Right of Recoupment or Set-off Against Deposit Account","body":"Section 9--340. Effectiveness of Right of Recoupment or Set-off Against\n                  Deposit Account.\n  (a) Exercise of recoupment or set-off. Except as otherwise provided in\nsubsection (c), a bank with which a deposit account is maintained may\nexercise any right of recoupment or set-off against a secured party that\nholds a security interest in the deposit account.\n  (b) Recoupment or set-off not affected by security interest. Except as\notherwise provided in subsection (c), the application of this article to\na 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\nmaintained with the secured party.\n  (c) When set-off ineffective. The exercise by a bank of a set-off\nagainst a deposit account is ineffective against a secured party that\nholds a security interest in the deposit account which is perfected by\ncontrol under Section 9--104(a)(3), if the set-off is based on a claim\nagainst the debtor.","path":["Uniform Commercial Code Law","Article 9. Secured Transactions","Part 3. Perfection and Priority","Subpart 4. Rights of Bank"],"source_url":"https://legislation.nysenate.gov/api/3/laws/UCC/9-340","current_through":"2026-09-11","vintage":"","retrieved_at":"2026-09-14T19:32:45Z","sha256":"09e712e328df5266e5274147653c4c69192aaa6e235dda80aa962f5c84d17495","source_id":"us-ny","stale":false,"prev":"us-ny/n.y.-uniform-commercial-code-law-9-339","next":"us-ny/n.y.-uniform-commercial-code-law-9-341"},"notice":"GroundRules: Original legal text. Not legal advice."}