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Iowa Code 554.9340 - Effectiveness of right of recoupment or setoff against deposit account

Iowa Code > Title XIII > Subtitle 5 > Chapter 554 > § 554.9340. Effectiveness of right of recoupment or setoff against deposit account

^{Current as of: 2009}

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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.