The Right of Setoff: What Bankers Need to Know
- The legal requirements to create a right of setoff
- The difference between a contractual right of setoff and a statutory right of setoff
- The differences between setoff, garnishment, and foreclosure of security interest, and why these terms are frequently misused
- What happens when a third party is competing with your financial institution’s right of setoff
- How the automatic stay in bankruptcy affects the right of setoff