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Exercising the Right of Setoff Against Deposit Accounts

Nov 22 2:00 PM - Nov 22, 2022 3:30 PM
Nov 22, 2022 2:00 PM - 3:30 PM
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Setoff is one of the remedies that can be used to collect past-due loans. But do you understand all the steps that must be taken before this right can be exercised? Learn the details, best practices, and methods with this informative webinar.

Learning Objectives

  • Explain the legal requirements that must be satisfied before your institution is permitted to exercise the right of setoff
  • Understand the differences between a contractual right of setoff and a common law right of setoff
  • Distinguish the right of setoff from the foreclosure of a security interest, and when it is best to use each method
  • Determine when your institution can set off without violating the legal rights of other parties
  • Identify which accounts are subject to setoff

Your institution has a common law right to set off a depositor’s account for a debt the depositor owes to your institution if certain legal requirements are satisfied. In addition, your institution may have a contractual right of setoff, depending on the wording of your deposit contracts. If a debtor defaults on a loan, when can your institution apply money from the debtor’s deposit account to pay past-due loan amounts? This webinar will explain the legal requirements that must be satisfied and the specific steps that must be taken, before exercising the right of setoff. This webinar also will explain what happens if an account has multiple owners, as well as how to handle accounts which are being garnished by other creditors.



Elizabeth Fast, Spencer Fane LLP

Elizabeth Fast is a partner with Spencer Fane LLP where she specializes in the representation of financial institutions. Elizabeth is the head of the firm’s training division. She received her law degree from the University of Kansas and her undergraduate degree from Pittsburg State University. In addition, she has a Master of Business Administration degree and she is a Certified Public Accountant. Before joining Spencer Fane, she was General Counsel, Senior Vice President, and Corporate Secretary of a $9 billion bank with more than 130 branches, where she managed all legal, regulatory, and compliance functions.




Your registration includes unlimited locations, making it easier to share and learn with remote staff.

Please note: You may share the link with others at your credit union, however the confirmation will be sent to one primary contact at your credit union. It will be up to the primary contact to share the material with others.

Additional Info

Event Type

On-Demand Webinar

Topics Covered

  • On-Demand Webinars
  • Operations
  • Member Service
  • Lending & Collections
  • Compliance