The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 9-340)
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§ 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 subdivision 9—104(a)(3) of this title, if the set-off is based on a claim against the debtor. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)