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#1559133 - 06/01/11 05:29 PM Acquiring accounts for past write-offs
AuditorK Offline
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Joined: Feb 2003
Posts: 962
PA
Later this year, our bank (Bank A) will be acquiring a small neighboring bank (Bank B). In the process, we will be acquiring a number of deposit accounts from the other bank (Bank B) for the same customers that we had previously written-off at our bank (Bank A) due to uncollectible negative balances.

My question is this - On the effective date of the merger, can we (Bank A) collect, via right of offset, monies owed to us from the former bank's (Bank B) accounts that we merge in?

Hope that makes sense. I suppose at a minimum we can inform these new customers to us that if they decline to make good on past due balances, we will close their newly acquired accounts.

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#1559152 - 06/01/11 05:47 PM Re: Acquiring accounts for past write-offs AuditorK
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
The right of offset is governed by state statute, state court decisions, and the terms of your contracts. While it's clear that once the merger is complete, the "unity" of debtor and creditor will be established, no one but your bank's attorney should be comfortable in telling you to proceed.

Regardless, I like the way you think. wink
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