right of offset

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Noun1.right of offset - (banking) the legal right of a bank to seize deposited funds to cover a loan that is in default
banking - engaging in the business of keeping money for savings and checking accounts or for exchange or for issuing loans and credit etc.
legal right - a right based in law
law, jurisprudence - the collection of rules imposed by authority; "civilization presupposes respect for the law"; "the great problem for jurisprudence to allow freedom while enforcing order"
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Because of this legal right of offset, the employer is able to subtract the resources of the pension/OPEB trust (fiduciary net position, or FNP) from its total pension/OPEB liability when calculating the net pension/OPEB liability that it reports on its government-wide statement of net position and its proprietary fund statement of net position.
The right of offset allows a bank to help itself to funds from any of the accounts you hold with it, including products in joint names, if you miss repayments.
The proposal to require an unconditional legal right of offset and intent to settle net or simultaneously would have significantly increased the size of balance sheets for banks and other institutions that engage in significant derivative transactions.
A bank wouldn't exercise the right of offset out of the blue, said Robin Burk at US Bank.
Starting in 2002, the customers filed lawsuits, including petitions to exercise their common law right of offset by deducting damages from the first contract barges against deferred amounts owed for the second contract barges.
Most businesses assume they can apply the right of offset to net a receivable and payable.
Should banks have the right of offset superior to those who have received outstanding checks?
Insurers are usually granted the right of offset when PHLs are carried on their books.
Whether a statutory or contractual right of offset exists;
In substance defeasance differs from sinking funds held by a trustee because the right of offset against liabilities is not permitted under GAAP.
In the event of insolvency of the ceding company, the reinsurer relies on its statutory or common law right of offset to reduce the losses payable to the ceding company by premium amounts owed by the ceding insurer.