AFTER ARTICLE 9: SECURITY INTEREST AND BANK SETOFFS IN CONSUMER DEPOSIT ACCOUNTS.

The article discusses about article 9 of the Uniform Commercial Code and how it significantly limit the security interest and set-off rights of a depository bank in consumer deposit accounts. According to the article, under the provisions of the Uniform Commercial Code, all security interests in non-consumer deposit accounts are under its rule with the exception of security interests in consumer deposit accounts as original collateral. It is also said that the Article 9 provides the depository bank favorable rights of set-off in the deposit account it keeps but just the same, this same right is also not applicable to those consumer deposit accounts as original collateral. This limited scope of Article 9 makes a difference to the regulation of security interests and set-off rights.