Exercising the Right of Setoff Against Deposit Accounts
March 9, 2026
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
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.
Presented By
Spencer Fane LLP
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