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 ?
Meanwhile, having received the advance payment and upon the vesting of the garnishee's obligation to pay for services, the debtor does not lose the ability to declare a setoff. (615) And the garnishee is specifically invited to set off a countervailing debt, even when that debt postdates a lien on the debt that the garnishee owes the debtor.
[section] 61.077 sets forth criteria on entitlement to setoffs and credits upon sale of a marital residence in a FJDM.
Pointing to 1997 amendments to the New Jersey Surplus Lines Insurance Guaranty Fund Act, which required that parties seeking recovery from the fund must first exhaust their rights under any other solvent insurance policy against which they have a claim, and that any amount payable by the fund on a "covered claim" is reduced by the amount of recovery from other insurance policies, the fund argued that any amounts attributable to the State Security policy should be subject to a setoff in the amount from Sayre's other insurers.
In In re Orexigen Therapeutics, Inc., the United States Bankruptcy Court for the District of Delaware recently refused to enforce a triangular setoff agreement among parent company McKesson Company ("McKesson"), McKesson's wholly owned subsidiary, McKesson Patient Relationship Solutions ("MPRS") and the Debtor, Orexigen Therapeutics, Inc.
(219) However, a setoff is not permitted under any circumstances if the creditor obtained the debt owed by the debtor after the opening of the bankruptcy case.
extension of the common law right of setoff in New York Debtor &
The issues about values, direction and setoff factors inherited by modern valleys relating to Neogene remained unresolved.
(4) Setoff between one entry in the current account and another entry in the account itself may not be made.
Thankfully, a shot at redemption was available the next day as I setoff for another long run.
Similar to most long term disability plans," (11) Standard's policy included a setoff provision that classified Social Security benefits as "deductible income." (12) This means that Standard's obligation to pay the disabled employee was reduced, dollar-for-dollar, by any amount the employee received from social security disability insurance.
Later the government sued Reeside for almost $33,000 overpayment, but he claimed something in law called "setoff," which I don't understand, and that instead of having been overpaid he was owed almost $190,000.