Setoff


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Setoff

Money held on behalf of a borrower that may be applied to repay the loan, but usually without the permission of the borrower.

Setoff

1. The ability of a debtor to reduce the amount of one's debt by an amount the creditor owes to the debtor. Thus, if a debtor owes a creditor $20,000 but the creditor owes the debtor $5,000 in an unrelated matter, setoff allows the debtor effectively to owe only $15,000.

2. In banking, the right of a bank to seize a debtor's account balance held at that bank if a debt is in or near default. Some jurisdictions limit the right of setoff; for example, the United States does not allow it to apply for commercial loans or credit card debt.
References in periodicals archive ?
To summarize, prepayment defeats the ABKCO style levy because Debtor & Creditor Law section 151 always authorizes the setoff of a previously encumbered obligation.
the value of extended setoff than do decentralized traders with many
41) In the same vein, it would be improper to allow a setoff post-verdict because it is contrary to [section] 786.
17) This rule appears to allow the government to use its setoff claim against JGB's claim for full payment on the contract.
The court noted that the elimination of joint and several liability combined with the decision in a key Florida case made setoff the "ligation du jour" for personal injury practitioners.
Adjustments in favor of the taxpayer under subsection 247(2) ("transfer pricing capital setoff adjustments" and "transfer pricing income setoff adjustments").
do not offset unless a legal or contractual right of setoff exists).
The EITF abstract for this issue also includes Securities and Exchange Commission staff guidance on determining the appropriate discount rate and the right of setoff between the recourse obligation and other related assets.
Superior Court of Los Angeles County, the court considered the question of setoff regarding the insolvency of an insurance company.
The bonds are not subject to annual appropriation or subject to setoff or abatement for any cause.
analysis of potential exemptions or defenses or to unclaimed property compliance, such as business to business debts, foreign-owned property or foreign transactions, right of setoff, and federal preemption
Banks jealously guard the common law right of setoff.