Wisconsin Statutes (Last Updated: January 10, 2017) |
Chapter 409. Uniform Commercial Code — Secured Transactions |
SubChapter III. PERFECTION AND PRIORITY |
Section 409.340. Effectiveness of right of recoupment or setoff against deposit account.
Latest version.
- (1) Exercise of recoupment or setoff. Except as otherwise provided in sub. (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 sub. (3) , the application of this chapter 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 s. 409.104 (1) (c) , if the setoff is based on a claim against the debtor.