Business and Personal Finance Dictionary

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• SET OFF
  
  1. In general, the legal right to reduce the amount owed by one party to another party by the sum that the second party also owes to the first party. 2. The confiscation of a deposits held by a borrower to offset some or all of the amounts owed by the depositor the depository institution for defaulted loans. A common law right that is usually blocked or reversed by a bankruptcy court.
  
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