Okla. Stat. tit. 12A § 1-9-340

Current through Laws 2024, c. 453.

Section 1-9-340 - Effectiveness of right of recoupment or set-off against deposit account

(a) Except as otherwise provided in subsection (c) of this section, a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account.

(b) Except as otherwise provided in subsection (c) of this section, the application of this article to a security interest in a deposit account does not affect a right of recoupment or set-off of the secured party as to a deposit account maintained with the secured party.

(c) The exercise by a bank of a set-off 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 subsection (a) of Section 1-9-104 of this title, if the set-off is based on a claim against the debtor.

Okla. Stat. tit. 12A, § 1-9-340

Added by Laws 2000 , SB 1519, c. 371, § 67, eff. 7/1/2001.

Oklahoma Code Comment

A banking institution's rights of set-off and recoupment against a deposit account maintained at the institution defeat an existing, perfected security interest in favor of a third-party secured party, except against a secured party that has become the depositary institution's customer of the deposit account (see section 9-104 ) . This result is consistent with the priority rules that apply to a depositary's security interest in a deposit account and a securities intermediary's rights against its customer. See revised sections 9- 327 and 9-328 . Note that "bank" is broadly defined at section 9-102(a)(8) to include any institution engaged in the business of banking, including savings banks, savings and loan associations, credit unions and trust companies. Section 9-340 changes the prior rule in Oklahoma and many other states that a bank's right of setoff against a deposit account could be subordinate to a prior perfected security interest tracing proceeds into such deposit account. See generally Alvin C. Harrell, Security Interests in Deposit Accounts: A Unique Relationship Between the UCC and Other Law, 23 U.C.C. L.J. 158 (1990).