Source: L. 2001: Entire article R&RE, p. 1370, § 1, effective July 1.
Subsection (a) states the general rule and provides that the bank may effectively exercise rights of recoupment and set-off against the secured party. Subsection (c) contains an exception: if the secured party has control under Section 9-104(a)(3) (i.e., if it has become the bank's customer), then any set-off exercised by the bank against a debt owed by the debtor (as opposed to a debt owed to the bank by the secured party) is ineffective. The bank may, however, exercise its recoupment rights effectively. This result is consistent with the priority rule in Section 9-327(4), under which the security interest of a bank in a deposit account is subordinate to that of a secured party who has control under Section 9-104(a)(3).
This section deals with rights of set-off and recoupment that a bank may have under other law. It does not create a right of set-off or recoupment, nor is it intended to override any limitations or restrictions that other law imposes on the exercise of those rights.
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 9 - Secured Transactions
Part 3 - Perfection and Priority
§ 4-9-301. Law Governing Perfection and Priority of Security Interests
§ 4-9-302. Law Governing Perfection and Priority of Agricultural Liens
§ 4-9-304. Law Governing Perfection and Priority of Security Interests in Deposit Accounts
§ 4-9-305. Law Governing Perfection and Priority of Security Interests in Investment Property
§ 4-9-306. Law Governing Perfection and Priority of Security Interests in Letter-of-Credit Rights
§ 4-9-308. When Security Interest or Agricultural Lien Is Perfected - Continuity of Perfection
§ 4-9-309. Security Interest Perfected Upon Attachment
§ 4-9-313. When Possession by or Delivery to Secured Party Perfects Security Interest Without Filing
§ 4-9-314. Perfection by Control
§ 4-9-315. Secured Party's Rights on Disposition of Collateral and in Proceeds
§ 4-9-316. Effect of Change in Governing Law
§ 4-9-317. Interests That Take Priority Over or Take Free of Security Interest or Agricultural Lien
§ 4-9-319. Rights and Title of Consignee With Respect to Creditors and Purchasers
§ 4-9-321. Licensee of General Intangible and Lessee of Goods in Ordinary Course of Business
§ 4-9-324. Priority of Purchase-Money Security Interests
§ 4-9-325. Priority of Security Interests in Transferred Collateral
§ 4-9-326. Priority of Security Interests Created by New Debtor
§ 4-9-327. Priority of Security Interests in Deposit Account
§ 4-9-328. Priority of Security Interests in Investment Property
§ 4-9-329. Priority of Security Interests in Letter-of-Credit Right
§ 4-9-330. Priority of Purchaser of Chattel Paper or Instrument
§ 4-9-332. Transfer of Money - Transfer of Funds From Deposit Account
§ 4-9-333. Priority of Certain Liens Arising by Operation of Law
§ 4-9-334. Priority of Security Interests in Fixtures and Crops
§ 4-9-337. Priority of Security Interests in Goods Covered by Certificate of Title
§ 4-9-339. Priority Subject to Subordination
§ 4-9-340. Effectiveness of Right of Recoupment or Set-Off Against Deposit Account
§ 4-9-341. Bank's Rights and Duties With Respect to Deposit Account
§ 4-9-342. Bank's Right to Refuse to Enter Into or Disclose Existence of Control Agreement