Cal. Commercial Code § 9340
Cal. Commercial Code § 9340
California · California Commercial Code · Status: effective · Effective 2000-01-01
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- Citation
- Cal. Commercial Code § 9340, California, version 1 as recorded 2026-07-25, yourstate.us, https://yourstate.us/provision/790678
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Full text
(a) Except as otherwise provided in subdivision (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) Except as otherwise provided in subdivision (c), the application of this division 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) 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 paragraph (3) of subdivision (a) of Section 9104, if the setoff is based on a claim against the debtor.