In banking – a right to seize the balance of an account of the borrower if a loan is in arrears.

In commerce – Right of debtor to reduce claim of creditor by amount owed.

In Litigation – Counterclaim made by a defendant based on a transaction that differs from what the plaintiff’s claim is based.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser