N.Y. UCC Law § 9-340

Section 9--340. Effectiveness of Right of Recoupment or Set-off Against\n Deposit Account.\n (a) Exercise of recoupment or set-off. Except as otherwise provided in\nsubsection (c), a bank with which a deposit account is maintained may\nexercise any right of recoupment or set-off against a secured party that\nholds a security interest in the deposit account.\n (b) Recoupment or set-off not affected by security interest. Except as\notherwise provided in subsection (c), the application of this article to\na security interest in a deposit account does not affect a right of\nrecoupment or set-off of the secured party as to a deposit account\nmaintained with the secured party.\n (c) When set-off ineffective. The exercise by a bank of a set-off\nagainst a deposit account is ineffective against a secured party that\nholds a security interest in the deposit account which is perfected by\ncontrol under Section 9--104(a)(3), if the set-off is based on a claim\nagainst the debtor.\n