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22 The Netherlands

Willem (Pim) Rank, Larissa Silverentand

From: Set-Off Law and Practice: An International Handbook (3rd Edition)

Edited By: William Johnston, Thomas Werlen, Frederick Link

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 18 April 2024

Banks and cross-border issues — Debt — Close-out netting — Set-off

This chapter discusses the law of set-off in the Netherlands. Under Dutch law, set-off operates as a mechanism for discharging claims. It allows a debtor to discharge his claim by reducing or extinguishing his creditor's claim by the amount of his cross-claim. There is no special regime for set-off clauses in finance documentation in the Netherlands. The chapter first provides an overview of set-off between solvent parties, focusing on statutory set-off, contractual set-off, and current account set-off. It then considers set-off against insolvent parties, taking into account the cooling-off period in bankruptcy, before turning to the so-called actio pauliana. It also explains specific provisions of the EU Collateral Directive aimed at protecting close-out netting provisions in a financial collateral arrangement. Finally, it analyses set-off in recovery and resolution of credit institutions and investment firms, along with issues arising in cross-border set-off.

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