Collections & Right of Set Off in Commercial Lending

12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET

Compliance is paramount! Errors can cause losses in excess of the loan amount. Do you understand the legal requirements that must be satisfied and the specific steps to take before exercising the right of set off for commercial borrowers?

AFTER THIS WEBINAR YOU’LL BE ABLE TO:

• Explain which legal requirements must be satisfied before set off is permitted
• Distinguish between contractual and common law rights of set off, and understand the best use of each
• Differentiate between the right of set off and foreclosure of a security interest, and know when it is best to use each method
• List the types of account ownership that are subject to set off
• Determine when your institution can favor itself over competing creditors

WEBINAR DETAILS

Commercial loan delinquencies may be rising, so it’s important to understand the right to set off deposit accounts for these past-due loans. Your institution has a common law right to set off if certain legal requirements are satisfied. In addition, you may have a contractual right to set off, depending on the language in your deposit contracts.

Exercising the right of set off is different from foreclosing on a security interest in the account. Making a mistake could result in losses that far exceed the loan amount. When can your institution apply money in the borrower’s or guarantor’s account to pay past-due loan amounts? Must the borrower or guarantor be notified before your institution exercises this right of set off? If your institution receives a garnishment from another creditor, can you set off the account before honoring the garnishment? This webinar will answer these questions and more.

Attendance certificate provided to self-report CE credits.

WHO SHOULD ATTEND?

This informative session is designed for staff involved with commercial loan collections, such as loan officers, workout officers, loan operations staff, collectors, attorneys, auditors, compliance officers, and managers.

TAKE-AWAY TOOLKIT

• Checklist of items that must be satisfied before right of set off is permitted
• Employee training log
• Interactive quiz

NOTE:  All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your financial institution is prohibited. Print materials may be copied for eligible participants only.