The Right of Setoff

Wednesday, January 27, 2021
11:00 am – 1:00 pm Eastern

"Right of Setoff" is used frequently in the banking industry when trying to collect on past-due debts owed by customers. Unfortunately, many bankers don't understand the legal requirements and procedures necessary to use this process. The risks of using the process incorrectly can be costly to your financial institution. On the other hand, successfully using the right of setoff can protect your financial institution from significant financial losses.

Do you know when the right of setoff is allowed and when it isn't? Do you know if your financial institution has a statutory or contractual right of setoff? Do you understand the financial risks of using your setoff rights incorrectly? If you don't know the answers to these questions, make sure to attend this valuable webinar.

This webinar does NOT discuss the procedures mandated by particular state laws.

Topics Covered:

• What are the legal requirements to create a "right of setoff?"
• What is the difference between a contractual right of setoff and a statutory right of setoff?
• What are the differences between setoff, garnishment, and foreclosure of security interest, and why are these terms frequently misused?
• What happens when a third party is competing with your financial institution's right of setoff?
• How does the automatic stay in bankruptcy affect the right of setoff?
• When is the right of setoff absolutely prohibited?
• How to handle notice to the customer?
• What is sample contractual language that can help your financial institution exercise its setoff rights?
• What are the liabilities that can be incurred when setoff is done incorrectly

Who Should Attend? 

All loan and deposit personnel, bank counsel and compliance officers.

Instructor

Terri Thomas

Terri D. Thomas, JD is the Director of the Kansas Bankers Association Legal Department, which specializes in providing compliance and legal assistance to Kansas banks.

Terri has worked with financial institutions for over thirty-nine years in various capacities. Most notably, she served for fourteen years as in-house legal counsel and trust officer for Bank of America and its Kansas predecessors. She has also served as a trust department manager and branch manager.

Receiving her Bachelor of Arts degree from Kansas State University in 1985, Terri continued her education at Washburn University School of Law and obtained her Juris Doctor in 1988. She has served as an Adjunct Professor at Washburn University School of Law in Topeka, Kansas and the University of Kansas School of Law in Lawrence, Kansas, and is a frequent seminar presenter for financial associations in the Midwest.

Attendance verification for CE credits provided upon request.

Webinar Sponsored by Total Training Solutions

If you are having issues with registering online, please contact CBAO's Education, Training & Special Event Coordinator, Patti Webb, (614) 610-1877.