Part E Guarantees and Security, 36 Lien and Set-Off

Subject(s):

Regulation of banks — Automatic set-off — Insolvency set-off — Transaction set-off

This chapter discusses the banker's right of lien, right of set-off, and other rights of set-off. While these rights do not generally involve a taking of security in the manner contemplated by the previous chapters, they can in practice operate as a valuable form of security in the event of the customer's insolvency.