letter of setoff |
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Definition
Written agreement through which a bank obtains a borrower's consent to seize his or her deposit(s) for non-payment of a loan or other obligations, or to offset credit balance of one account with the debit balance of another. Banks require this letter where they believe their normal right to setoff, provided under law, may be challenged. Also called lien letter.
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letter of setoff is in the Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.
letter of setoff appears in the definition of the following term: lien letter
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