554.9340 Effectiveness of right of recoupment or setoff against deposit account. 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 setoffagainst 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 notaffect a right of recoupment or setoff of the secured party as to a deposit account maintainedwith 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 whichis perfected by control under section 554.9104, subsection 1, paragraph 'c', if the setoff isbased on a claim against the debtor. 2000 Acts, ch 1149, §60, 187Referred to in §554.9109, 554.9341 Sat Dec 23 11:02:03 2023 Iowa Code 2024, Section 554.9340 (24, 0)
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