The "right of offset" allows a bank to auction a customer's property to the highest bidder to recover a loan in default.

Question

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The right of offset allows a bank to use funds from a customer's deposit account to cover a loan in default, but it does not allow the bank to auction off the customer's property. This is a separate process that may only be done with proper legal authority, typically through a foreclosure proceeding.

The "Right of Offset" Allows a Bank to Auction a Customer's