Rights of set-off

(redirected from Rights of Setoff)

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 ?
Under the proposed Plan, claims secured by collateral or rights of setoff and claims entitled to priority in payment will be paid in full, to the extent they have not already been paid.