References in periodicals archive ?
The principles of legal and equitable set-off may be varied under contract.
Account combination can be conceptualized as a reaffirmation of existing legal set-off principles, with a self-help component.
It is probably true to say that in no case can an intervener defeat a debtors current account set-off.
Having synopsized the fundamental principles of set-off, and presented account combination as a contractual set-off prototype, I now turn my attention to the basic concept of a security interest.
The nursing home settled and after trial, the court held that a set-off was appropriate for the nursing home's settlement.
Once entitlement to a set-off is determined, calculating the set-off is the next step.
As to economic damages, multiply the ratio of economic damages/total verdict by the settlement amount to determine the set-off.
Although the Supreme Court's decision in Strumpf is helpful in now allowing banks to take appropriate action to protect their set-off rights when a customer files bankruptcy, the decision did not answer all of the questions that arise in this regard.
Accordingly, in this type of situation, you should place an administrative hold upon those depository accounts and you should contact counsel immediately to take the necessary action to seek authority for the set-off in compliance with the Strumpf decision.
In Standard & Poor's view, on an insolvency of the insurance company, if the borrower contested the set-off prohibition, the courts would use discretion, taking into consideration the closeness of the relationship between the bank and the insurance company as well as the degree to which the mortgage product's marketing material explained the risks of the insurance company's insolvency.
Karen Naylor, Managing Director at Standard & Poor's European Structured Finance Ratings Services group, stated that in the case where a pool of Dutch mortgage loans is being securitized, the set-off issue can determine, quite simply, whether or not investors in the RMBS are repaid interest and principal.
Naylor explained further that the set-off problem can occur only when the insurer is defaulting on its obligations and that it is, therefore, possible to rate a transaction where the current rating on the insurer provides a ceiling to the rating on the securitization notes.