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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved