This article does not preclude subordination by agreement by a person entitled to priority.
Source: L. 2001: Entire article R&RE, p. 1370, � 1, effective July 1.
Editor's note: This section is similar to former � 4-9-316 as it existed prior to 2001.
4-9-340. 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 section 4-9-104 (a)(3), if the set-off is based on a claim against the debtor.
Source: L. 2001: Entire article R&RE, p. 1370, � 1, effective July 1.