O.C.G.A. § 11-9-340 (2019)
Effectiveness of right of recoupment or set-off against deposit account
(a) Exercise of recoupment or set-off. Except as otherwise provided in subsection (c) of this Code 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) Recoupment or set-off not affected by security interest. Except as otherwise provided in subsection (c) of this Code 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) 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 paragraph (3) of subsection (a) of Code Section 11-9-104, if the set-off is based on a claim against the debtor.
History
Code 1981, § 11-9-340, enacted by Ga. L. 2001, p. 362, § 1.
Annotations
JUDICIAL DECISIONS Bank’s right of setoff superior. - In a case predicated on the Georgia tort law of conversion, a district court’s entry of summary judgment in favor of a bank was affirmed because O.C.G.A. §§ 11-9109(a)(1) and (d)(10)(A), and 11-9-340 governed the effectiveness of setoff rights in deposit accounts, brought the case ex-
pressly within the authority of the Uniform Commercial Code, and provided that the bank’s setoff right was superior to any security interest of a company in a predecessor company’s deposited funds. Eleison Composites, LLC v. Wachovia Bank, N.A., 267 Fed. Appx. 918, 2008 U.S. App. LEXIS 5045 (11th Cir. 2008).
RESEARCH REFERENCES U.L.A. Uniform Commercial Code (U.L.A.) § 9340.