6-08.6-10. Recoupment or set off.

1. Except as provided in subsection 2 or 3, a bank or credit union may not exercise a right of recoupment or set off against a special deposit.

2. An account agreement may allow the bank or credit union to debit the special deposit: a. When the bank or credit union 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 or credit union that relates to an overdraft in the special deposit account; c. For costs incurred by the bank or credit union that relate directly to the special deposit; or d. To reverse an earlier credit posted by the bank or credit union to the balance of the special deposit account, if the reversal occurs under an event or circumstance warranted under other law governing mistake and restitution.

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