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BankersOnline.com Forums State-Specific Compliance Issues Indiana Right of offset
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#805269 - 08/29/07 08:38 PM Right of offset
RDS Offline
Member
Joined: Sep 2005
Posts: 66
A customer has a mortgage, which is delinquent, and a deposit account which has a direct deposit. Is it within the Indiana law and bank's offset to take a payment(s) from the account?

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#805280 - 08/29/07 08:44 PM Re: Right of offset RDS
jap Offline
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jap
Joined: Mar 2004
Posts: 600
IN
What does your note say?
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#805311 - 08/29/07 09:00 PM Re: Right of offset jap
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,529
Bloomington, IN
It's been a while since I had to look this up but I think you will find setoffs discussed in IC 26-1 and I beleive the section is either 9 or 9.1.
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#805646 - 08/30/07 12:12 PM Re: Right of offset Dan Persfull
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,350
Galveston, TX
It may depend on the source of funds. If the direct deposit is SSA payment, they are not subject to offset. Also, be carefully on mortgage loans, some states have provision of only allowing one form of cure for delinquency. I would call your attorney.
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#806102 - 08/30/07 04:48 PM Re: Right of offset rlcarey
RDS Offline
Member
Joined: Sep 2005
Posts: 66
Thanks for the information and quick response. I see, unfortunately, that the direct deposit is Soc Sec funds.

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#806243 - 08/30/07 05:53 PM Re: Right of offset RDS
RDS Offline
Member
Joined: Sep 2005
Posts: 66
For those whom may need this in the future it is under
IC26-1-9.1-340 & 404

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