Setoff

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Related to sets off: follow suit, set forth, holding up

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.
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To the north of the medieval and Baroque centre is the Citta Nuova, in which the regular grid of a rational plan, like the earlier one of the New Town of Edinburgh, sets off the great monuments of the last phase of Palermo's prosperity, when the rich built palaces and public buildings in an extraordinary flowering of Liberty-style (Italy's answer to Art Nouveau, named after the hugely influential shop in London).
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