Payment Netting and Setoff Clause Samples
The Payment Netting and Setoff clause allows parties to offset mutual payment obligations, so that only the net balance is paid between them. In practice, if both parties owe each other money under the agreement, instead of making separate payments, the amounts are netted against each other and only the difference is settled. This mechanism streamlines financial transactions, reduces administrative burden, and minimizes credit risk by ensuring that only the net amount is exposed to potential default.
Payment Netting and Setoff. The Trust, on behalf of the Customer, acknowledges and agrees that DBSI has the right to setoff and apply any amounts, fees or charges due to it hereunder against amounts held in any Accounts of Customer subject to this Agreement provided that any Account subject to setoff under this Section is owned solely by the same Customer.