Highlight the accounts that may be set off and when the right to set off arise

A right of set off arises immediately in the following instances;
i) On the death, mental incapacity or bankruptcy of a customer.
ii) On receipt of a garnishee order.
iii) On receipt of notice of assignment of a customer’s credit balance.
iv) On receipt of notice of a second mortgage over the security charged to the bank.

The following accounts may be set off
i) A customer’s credit account and debit account designated as office account, deposit account, current account etc.
ii) A credit private account and a debit trust account where the private account holder is the
sole trustee.
iii) A credit private account and a joint or partnership account where joint and several liability has been established.
iv) A credit current account and a loan account.

---

NatalieR answered the question on February 14, 2022 at 13:25