Template:Insolvency set-off capsule
It has been treated as an authoritative statement of the law since 1972[1] that one cannot contract out of insolvency set-off. The operation of the insolvency set-off rules is automatic and mandatory upon the commencement of winding-up. A bank cannot agree not to exercise the right to combine accounts. Interestingly, this is not the case under the Swiss Bankruptcy Code.
- ↑ See National Westminster Bank Ltd v Halesowen and in 1995, Stein v Blake