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Set-off: Difference between revisions
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This arises where a customer has multiple bank accounts some of which are in debit and some in credit. It is also known as the [[combination of accounts]]. It is arguably available in any situation where one party has multiple accounts with another. | This arises where a customer has multiple bank accounts some of which are in debit and some in credit. It is also known as the [[combination of accounts]]. It is arguably available in any situation where one party has multiple accounts with another. | ||
Discussed in some | Discussed in some detail in {{cite|Fearns|Anglo-Dutch Paint and Chemical Company Limited|2010|EWHC|2366}}. | ||
The question arises as to whether it is available across multiple currencies. | The question arises as to whether it is available across multiple currencies. | ||
====Insolvency set-off==== | ====Insolvency set-off==== | ||
The mandatory rules of insolvency set-off are cannot be varied by agreement. | ''You can’t contract out of [[insolvency set-off]] under {{t|English law}}.'' | ||
{{insolvency set-off capsule}} | |||
The mandatory rules of [[insolvency set-off]] are cannot, under English law, be varied by agreement. An account must be taken of the mutual dealings between the creditor and the bankrupt. Sums due from one must be set off against the sums due from the other, except that sums due from the bankrupt cannot be included if, when the bankrupt debtor incurred them, the creditor knew of existing formal bankruptcy steps against that debtor: | |||
*a resolution or petition to wind-up (if a company); | *a resolution or petition to wind-up (if a company); | ||
*an application for an administration order or of notice of intention to appoint an administrator (if a company); or | *an application for an administration order or of notice of intention to appoint an administrator (if a company); or | ||
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{{assignment and set off}} | {{assignment and set off}} | ||
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*For setting off of exposures under a master agreement versus other general exposures against the counterparty, see: | *For setting off of exposures under a master agreement versus other general exposures against the counterparty, see: | ||
**{{isdaprov|Set-off}} ({{isda}}) | **{{isdaprov|Set-off}} ({{isda}}) | ||