The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

LETTER OF SETOFF Definition & Legal Meaning

Definition & Citations:

A bank obtains borrower’s written consent to seize an account for non-payment of a loan or other obligations. If a bank believes its normal, lawful right to setoff may be challenged, it requires this letter. Offsets credit balance of one account with the debit balance of another. Also known as lien letter.

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