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The Right of Setoff: What Bankers Need to Know

The right of setoff is a complicated, but very effective, tool for collecting debts owed to a bank. Learn the best practices and dangers that can arise when using this process.

OnDemand
Recorded Thursday,
February 15th, 2024
Presented by Terri D. Thomas
2h total length
$299.00 or 1 Token

Includes: 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Collections
  • Compliance
  • Risk Management/Legal
  • Bank Legal Counsel
  • Branch Manager
  • Commercial Lender
  • Compliance Officer
  • Consumer Lender/Retail Banker
  • Deposit Operations Manager/Specialist
  • Loan Operations Manager/Specialist
  • Senior Management
  • Teller
  • Trainer
  • Workout Specialist/Collector

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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.

What You'll Learn

  • The legal requirements to create a right of setoff
  • The difference between a contractual right of setoff and a statutory right of setoff
  • The differences between setoff, garnishment, and foreclosure of security interest, and why these terms are frequently misused
  • What happens when a third party is competing with your financial institution's right of setoff
  • How the automatic stay in bankruptcy affects the right of setoff

Who Should Attend

All loan and deposit personnel, bank counsel, and compliance officers need to take this course.

Terri D. Thomas

Instructor Bio

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.

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