Rights of set-off

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Rights of set-off

An agreement defining each party's rights should one party default on its obligation. A setoff is common in parallel loan arrangements.

Rights of Set-Off

A portion of a loan agreement stating the rights of each party should one party or the other default on his/her obligations. Rights of set-off are most often stated explicitly when two parties are lending money to each other. See also: Parallel loan.
References in periodicals archive ?
Credit Monitoring and Loan Recovery Importance of follow up/monitoring of credit at the branch and other levels of the bank Various tools and modalities of physical and financial follow-up of credit, specially at the branch level Need and modality of annual review/renewal of credit Personal liabilities of the guarantor and principal debtor Exercising rights of set off in certain cases 7.