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What is a setoff?

What is a setoff? Here are some definitions.

Noun
  1. (finance) The situation where a bank or similar organisation repays itself money owed by an accountholder out of his or her account.
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Examples
Ordinarily, creation of a lien on a debt, contingent or vested, would interfere with the strategy of setoff.
Thankfully, a shot at redemption was available the next day as I setoff for another long run.
Tenders are invited for Electrical work of replacement of old defective submersible pump setoff NIE Guest House Campus New Delhi.
He is entitled to setoff only against uncontested claims or claims which have become res judicata.
New stops have been installed and services will make those stops their setoff point.
Credit risk is mitigated through the use of collateral and legally enforceable netting or setoff agreements.

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