Section 355.9-340 - Effectiveness of right of recoupment or set-off against deposit account(1) Except as otherwise provided in subsection (3) of this section, 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.(2) Except as otherwise provided in subsection (3) of this section, the application of this article 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.(3) 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 KRS 355.9-104(1)(c), if the set-off is based on a claim against the debtor.Effective:7/1/2001
Created 2000, Ky. Acts ch. 408, sec. 80, effective7/1/2001.