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 classic literature ?
Come, monsieur, come!" and both set off towards the capital at full gallop.
To say the truth, these soporific parts are so many scenes of serious artfully interwoven, in order to contrast and set off the rest; and this is the true meaning of a late facetious writer, who told the public that whenever he was dull they might be assured there was a design in it.
And the king, putting spurs to his horse, set off to the tent of Lord Leven.
They declared the secret of Fairy-than-a-Fairy's royal birth, and the Queen taking the two lovers in her carriage set off with them for the capital of the kingdom.
The weather was not tempting enough to draw the two others from their pencil and their book, in spite of Marianne's declaration that the day would be lastingly fair, and that every threatening cloud would be drawn off from their hills; and the two girls set off together.
Those bands, in effect, shortly afterward broke up their encampments and set off for a less beaten neighborhood.
Accordingly, on the 22d of March, they all set off, to the number of seventeen men, in two canoes - and here we cannot but pause to notice the hardihood of these several expeditions, so insignificant in point of force, and severally destined to traverse immense wildernesses where larger parties had experienced so much danger and distress.
Vernon set off for London as soon as she had determined what should be done.