Legislation

* § 680-j. Recoupment or set off. 1. Except as provided in subdivision
two or three of this section, a bank shall not exercise a right of
recoupment or set off against a special deposit.

2. An account agreement may authorize the bank to debit the special
deposit:

(a) when the bank becomes obligated to pay a beneficiary, in an amount
that does not exceed the amount necessary to discharge the obligation;

(b) for a fee assessed by the bank that relates to an overdraft in the
special deposit account;

(c) for costs incurred by the bank that relate directly to the special
deposit; or

(d) to reverse an earlier credit posted by the bank to the balance of
the special deposit account, if the reversal occurs under an event or
circumstance warranted under other law of this state governing mistake
and restitution.

3. The bank holding a special deposit may exercise a right of
recoupment or set off against an obligation to pay a beneficiary, even
if the bank funds payment from the special deposit.

* NB Effective January 1, 2026