Exercising the Right of Setoff Against Deposit Accounts

March 9, 2026

Collections Operations Deposit Account Compliance

Live Webinar

DateMar 9, 2026Duration90 minutes

08:00 AM PDT09:00 AM MDT

10:00 AM CDT11:00 AM EDT

Unlimited connections for your institution
Available on desktop, mobile & tablet
Take-away toolkit
Presenter’s contact info for questions

On-Demand Webinar

Unlimited & shareable access starting two business days after live stream
Available on desktop, mobile & tablet devices 24/7
Take-away toolkit
Ability to download webinar video
Presenter's contact info for questions

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When a borrower defaults, can your institution lawfully reach into a deposit account to satisfy the debt?

Exercising the right of setoff requires precision, compliance, and a clear understanding of both legal and contractual boundaries. This webinar will delve into the legal requirements that must be satisfied, the procedural steps to follow before applying deposit funds to past-due loan amounts, and the risks of missteps.

KEY WEBINAR TAKEAWAYS

Legal requirements that must be satisfied before your institution is permitted to exercise the right of setoff
Contractual right of setoff versus common law right of setoff
Distinguishing the right of setoff from the foreclosure of a security interest, and when it is best to use which method
Situations when your institution can setoff without violating the legal rights of other parties

BONUS MATERIALS

Checklist of items that must be satisfied before right of setoff is permitted

WEBINAR DETAILS

Your institution has a common law right to setoff a depositor’s account for a debt the depositor owed to your institution, provided certain legal requirements are met. In addition, your institution may have a contractual right of setoff, depending on the specific language in its deposit agreements. A debtor defaulting on a loan raises the critical question of when the institution may apply funds from the debtor’s deposit account to past-due loan amounts. This webinar will explain the legal requirements that must be satisfied, and the specific steps the institution must take, before exercising the right of setoff. We will also examine what happens when an account has multiple owners as well as how to manage accounts subject to garnishment by other creditors.

WHO SHOULD ATTEND?

Deposit operations personnel
Collections personnel
Loan operations personnel
Attorneys
Compliance officers and auditors
Managers

TAKE-AWAY TOOLKIT

Employee training log
Interactive quiz
PDF of slides and speaker’s contact info for follow-up questions
Attendance certificate provided to self-report CE credits

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