N.Y. Uniform Commercial Code Law Section 9-340
Effectiveness of Right of Recoupment or Set-off Against Deposit Account

Section 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 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)

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 Section 9--104(a)(3), if the set-off is based on a claim against the debtor.

Source: Section 9-340 — Effectiveness of Right of Recoupment or Set-off Against Deposit Account, https://www.­nysenate.­gov/legislation/laws/UCC/9-340 (updated Sep. 22, 2014; accessed Jan. 31, 2026).

Green check means up to date. Up to date

Verified:
Jan. 31, 2026

Last modified:
Sep. 22, 2014

§ 9-340. Effectiveness of Right of Recoupment or Set-off Against Deposit Acct.'s source at nysenate​.gov

Link Style