Mutual credits and set-off: netting reciprocal obligations to determine the payable balance between corporate debtor and counterparty. Where reciprocal financial dealings exist between a corporate debtor and another party, the regulation permits set-off of sums due from each to determine the net amount payable. The mechanism aggregates mutual credits and debits and offsets them so only the balance remains payable, applying to claims in the liquidation context and illustrated by a reciprocal debt scenario resulting in a net payable balance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Mutual credits and set-off: netting reciprocal obligations to determine the payable balance between corporate debtor and counterparty.
Where reciprocal financial dealings exist between a corporate debtor and another party, the regulation permits set-off of sums due from each to determine the net amount payable. The mechanism aggregates mutual credits and debits and offsets them so only the balance remains payable, applying to claims in the liquidation context and illustrated by a reciprocal debt scenario resulting in a net payable balance.
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