right of offset

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  • noun

Words related to right of offset

(banking) the legal right of a bank to seize deposited funds to cover a loan that is in default

References in periodicals archive ?
In contrast, Trinity's customers did not dispute their liability for the sales price of the second set of barges, but instead claimed a right of offset by deducting damages from the first contract barges against deferred amounts owed for the second contract barges.
13) Although not in Prudential's securitized transaction, credit enhancing measures could be structured at a cost to shield the SPC from the effect of Prudential's loss of the right of offset.
The court stated that a right of offset would provide the plaintiff with a priority which would conflict with the statutory priority.
This right of offset stems from the Company's 2008 acquisition of claims by Anga M'Hak Publishing ("Anga") against SMS.
The note bears interest at increasing annual interest rates, and is secured by a lien on the intellectual property rights sold, a right of offset against the lease, and a guaranty.
The appellate court applied this doctrine differently, concluding that the right of offset in the retainer agreement made the origin of the payment the specific legal bill, not the annual retainer, as the earlier court had stated.
Retainer agreements are ordinary and necessary business expenses, if there is no right of offset .
With reference to the second section of the paragraph which refers to the Board's right, under certain circumstances, to appoint one or more special auditors to review such statements and plans as are drawn up by the Board in accordance with the Swedish Companies Act, this regulation is to be extended so that, in addition to mergers and the issue of shares, it also covers the issue of warrants or convertibles containing non-cash regulations or stipulating that subscription be carried out with right of offset or other terms and conditions, the transfer of the Company's own shares in exchange for payment in forms other than money, the reduction of the share capital or the statutory reserve, and the splitting of limited companies.
The lender group has exercised its right of offset against the Company's operating accounts, including those at Bank of America, and notified the Company that it will continue to exercise its offset rights against such accounts.
Since then, the banks have asserted their right of offset and applied cash in the Company's operating accounts against balances due them.
7 million, which amount is subject to a mandatory right of offset against the promissory notes executed by the Continuing Shareholders in the HFG financing.
The Board can approve a non-cash issue or that the share is to be subscribed with right of offset or, otherwise, under the conditions referred to in Ch.
The rents are unconditional and absolute obligations of the state, subject to legislative appropriation of such funds, with no right of offset or abatement.