Title 6A
Uniform Commercial Code
Chapter 9
Secured Transactions
Part 3
Perfection and Priority
Subpart 4
Rights of Bank
R.I. Gen. Laws § 6A-9-340
§ 6A-9-340. Effectiveness of right of recoupment or set-off against deposit account.
(a) Exercise of recoupment or set-off. Except as otherwise provided in subsection (c), 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) Recoupment or set-off not affected by security interest. Except as otherwise provided in subsection (c), the application of this chapter 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) When set-off ineffective. 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 § 6A-9-104(a)(3), if the set-off is based on a claim against the debtor.
History of Section.
P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.