Consumer Banking and Payments Law: 10.2.7.1 Account Must Be in Debtor’s Name
The setoff must be exercised against the customer-debtor’s account, not against an account that belongs to another person—such as an account that is held in trust by the debtor or that is held by the debtor as agent of another88—unless the account owner is secondarily liable.89 Setoff is tortious if the bank knows or has reason to know that funds in the account belong to another.90 Moreover, setoff cannot be used if the b