{"code":"COM","codeName":"Commercial Code","section":"9340","citation":"Com. Code, § 9340","status":"in-force","lawOn":"2026-09-28","headings":[{"name":"DIVISION 9. SECURED TRANSACTIONS [9101. - 9907.]","url":"https://blackletter.si/commercial-code/division-9"},{"name":"CHAPTER 3. Perfection and Priority [9301. - 9342.]","url":"https://blackletter.si/commercial-code/division-9/chapter-3"}],"history":"Added by Stats. 1999, Ch. 991, Sec. 35.   Effective January 1, 2000.   Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.","effective":"2000-01-01","html":"<p>(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.</p><p>(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.</p><p>(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 <a href=\"/com/9104\">9104</a>, if the setoff is based on a claim against the debtor.</p>","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.","otherVersions":[],"url":"https://blackletter.si/commercial-code/perfection-and-priority-9340","source":"California Legislative Information bulk export (pubinfo)"}