A credit union has the right to setoff its member’s account if
certain legal requirements are satisfied. This webinar will explain
these requirements and will address the steps a credit union must take
before it exercises its right of setoff.
If a member defaults on a loan, when can the credit union apply money
from the member’s account to pay the loan? Does the member have to
be notified before the credit union exercises its right of setoff? What
if the member’s account has more than one owner? If the credit
union receives a garnishment from another creditor, can the credit union
setoff before honoring the garnishment? Learn the answers to these
questions and more.
Fundamental nature of the right of setoff
Differences between setoff and foreclosure of a security
Requirements the credit union must satisfy before setoff is
Competing claims for the member’s funds – who wins?
How the automatic stay in bankruptcy affects the right of