Right of Setoff on Deposit Accounts & Loans: Legal Issues | The League | 5 February 2019 | 1 E Main St #101, 1 E Main St #101 1 E Main St, Madison, WI 53703

Your institution has a common law right to setoff a depositor’s account for a debt owed to your institution – if certain legal requirements are satisfied. In addition, your institution may have a contractual right of setoff – depending on the terms of your deposit contracts.

If a debtor defaults on a loan, when can your institution apply money from the debtor’s account to pay the loan? Does the debtor have to be notified beforehand? What if the debtor’s account has a joint owner? If your institution receives a garnishment from another creditor, can you setoff before honoring the garnishment? This webinar will answer these questions and more. Join us to learn the legal requirements that must be satisfied and the steps required before exercising the right of setoff.

Learning Objectives:
• Legal requirements that must be satisfied before setoff is permitted
• Differences between a contractual right of setoff and a common law right of setoff, and when to use each
• Differences between setoff and foreclosure of a security interest, and how to choose the best method
• Situations when your institution can setoff without violating the other parties’ legal rights
• Learn which accounts and loans are subject to setoff

2019 Speakers:

Elizabeth Fast
JD, CPA, Spencer Fane, LLP

2019 Sponsors:

• Unite for Good
• Wisconsin Credit Union
• get connected League event