Template:Insolvency set-off capsule

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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.