Right of Setoff Clause
(Credit Agreement)

Summary

This Right of Setoff clause for a credit agreement is used in a syndicated loan transaction to provide a contractual right of setoff and give certainty as to enforcement by a court, regardless of governing state law. This clause includes practical guidance and drafting notes. The capitalized terms used in these clauses should be conformed to the defined terms in the relevant credit agreement. For additional information, see Events of Default Enforcement, Remedies, and Cures (Credit Agreement). For a full listing of key content convering events of default, see Events of Default Resource Kit. For a full listing of key content covering a credit agreement, see Credit Agreement Resource Kit.