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Effectiveness of right of recoupment or set-off against deposit account

9A V.S.A. § 9—340
in effect
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9—340. Effectiveness of right of recoupment or set-off against deposit account (a) Except as otherwise provided in subsection (c) 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. (b) Except as otherwise provided in subsection (c) 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. (c) 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 subdivision 9—104(a)(3) of this title, if the set-off is based on a claim against the debtor. Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.
Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/section/09A/009/00340Fetched: 10/21/2026

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