Can you summarize IACO 554.9340?

Short Summary

1.Exercise of recoupment or setoff.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.Recoupment or setoff not affected by security interest.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.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 554.9104, subsection 1, paragraph c, if the setoff is based on a claim against the debtor. 2000 Acts, ch 1149, 60, 187 Referred to in 554.9109, 554.9341

Jurisdiction

Iowa

Source

• Banking