Minn. Stat. § 336.9-340
Effectiveness of Right of Recoupment or Setoff Against Deposit Account
Minnesota · Minnesota Statutes Chapter 336 — Uniform Commercial Code · Status: effective
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- Citation
- Minn. Stat. § 336.9-340, Effectiveness of Right of Recoupment or Setoff Against Deposit Account, Minnesota, version 1 as recorded 2026-09-28, yourstate.us, https://yourstate.us/provision/1728985
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Full text
(a) Exercise of recoupment or setoff. Except as otherwise provided in subsection (c), 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.
(b) Recoupment or setoff 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 setoff of the secured party as to a deposit account maintained with the secured party.
(c) 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 336.9-104(a)(3), if the setoff is based on a claim against the debtor.