Mich. Comp. Laws § 440.9340
Effectiveness of right of recoupment or setoff against deposit account.
Michigan · Michigan Compiled Laws — UNIFORM COMMERCIAL CODE (Act 174 of 1962) · Status: effective
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- Citation
- Mich. Comp. Laws § 440.9340, Effectiveness of right of recoupment or setoff against deposit account, Michigan, version 1 as recorded 2026-08-18, yourstate.us, https://yourstate.us/provision/1362260
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Full text
(1) 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) 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) 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 that is perfected by control under section 9104(1)(c), if the setoff is based on a claim against the debtor.