Section 554.9340 - Effectiveness of right of recoupment or setoff against deposit account1.Exercise of recoupment or setoff. Except as otherwise provided in subsection 3, a bank with which a deposit account is maintained may exercise any right of recoupment or setoff against a secured party that holds a security interest in the deposit account.2.Recoupment or setoff not affected by security interest. Except as otherwise provided in subsection 3, the application of this Article to a security interest in a deposit account does not affect a right of recoupment or setoff of the secured party as to a deposit account maintained with the secured party.3.When setoff ineffective. The exercise by a bank of a setoff 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 section 554.9104, subsection 1, paragraph "c", if the setoff is based on a claim against the debtor.2000 Acts, ch 1149, §60, 187
2000 Acts, ch 1149, §60, 187Referred to in §554.9109, 554.9341