3. Preservation of Setoff Right. Subsection (b) [Maine cite subsection 2)] makes clear that a bank may hold both a right of setoff against, and an Article 9 [Maine cite Article 9-A] security interest in, the same deposit account. By holding a security interest in a deposit account, a bank does not impair any right of setoff it would otherwise enjoy. This subsection does not pertain to accounts evidenced by an instrument (e.g., certain certificates of deposit), which are excluded from the definition of "deposit accounts."

§9-1341.__Bank's rights and duties with respect to deposit account

Except as otherwise provided in section 9-1340, subsection (3), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended or modified by:

(1)__The creation, attachment or perfection of a security interest in the deposit account;

(2)__The bank's knowledge of the security interest; or

(3)__The bank's receipt of instructions from the secured party.

Official Comment

1. Source. New.

2. Free Flow of Funds. This section is designed to prevent security interests in deposit accounts from impeding the free flow of funds through the payment system. Subject to two exceptions, it leaves the bank's rights and duties with respect to the deposit account and the funds on deposit unaffected by the creation or perfection of a security interest or by the bank's knowledge of the security interest. In addition, the section permits the bank to ignore the instructions of the secured party unless it had agreed to honor them or unless other law provides to the contrary. A secured party who wishes to deprive the debtor of access to funds on deposit or to appropriate those funds for itself needs to obtain the agreement of the bank,