Right of offset

Posted By: Many Hats

Right of offset - 06/17/08 10:06 PM

If we have a consumer loan in default (a single borrower) and we cannot reach the borrower, but she has a BUSINESS account (just in her name) with money in it, can we get to that money?
Posted By: rlcarey

Re: Right of offset - 06/18/08 02:54 PM

What do you mean by "business account? Jane Doe DBA Jane's Flowers?? The answer would be yes. Jane Doe Inc., the answer would be no.
Posted By: Many Hats

Re: Right of offset - 06/18/08 03:19 PM

It's Inc.....so it would be No. Thanks for the help!
Posted By: Georgia Golfer

Re: Right of offset - 06/23/08 07:54 PM

Can you please provide me to the cite in the Florida UCC dedicated to the right of offset. We have a business loan customer who may default & he & his wife both personally guarantee the loan. We are looking at whether we can offset both the business DDA & their personal DDA. They both sign on both accounts.

Posted By: rlcarey

Re: Right of offset - 06/24/08 04:02 AM

The right of offset is not usually codified. I would call your attorney. If the loan is guaranteed, you may have to make demand prior to exercising your right of offset. Your guarantee contract may also address this issue.