                                 CODE OF VIRGINIA

EFFECTIVENESS OF RIGHT OF RECOUPMENT OR SET-OFF AGAINST DEPOSIT ACCOUNT (§
8.9A-340)

a. Exercise of recoupment or set-off. Except as otherwise provided in subsection
(c), 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. Recoupment or set-off not affected by security interest. Except as otherwise
provided in subsection (c), the application of this title 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. When set-off ineffective. 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 &#xA7;
8.9A-104 (a) (3), if the set-off is based on a claim against the debtor.

HISTORY: 2000, c. 1007.