setoff

American  

[set-awf, -of] / ˈsɛtˌɔf, -ˌɒf /

noun

1. something that counterbalances or makes up for something else, as compensation for a loss.

2. Accounting. a counterbalancing debt or claim, especially one that cancels an amount a debtor owes.

3. Also called offset.  Architecture.

   1. a reduction in the thickness of a wall.

   2. a flat or sloping projection on a wall, buttress, or the like, below a thinner part.

4. something used to enhance the effect of another thing by contrasting it, as an ornament.

5. Printing. offset.

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Etymology

Origin of setoff

First recorded in 1615–25; noun use of verb phrase set off

Example Sentences

Even though a triangular setoff may be permissible under state law, it doesn’t work in bankruptcy because “the Bankruptcy Code imposes its own strict requirements,” Peck said.

From BusinessWeek • Oct. 6, 2011

Peck said that bankruptcy law requires mutuality, meaning that setoff only exists between the same two companies.

From BusinessWeek • Oct. 6, 2011

A setoff to recover debt owing to an affiliate isn’t allowed by the language of the statute, Peck said.

From BusinessWeek • Oct. 6, 2011

He said that setting off under a swap agreement is permissible even after bankruptcy, although only if the right of setoff exists in the first place.

From BusinessWeek • Oct. 6, 2011

She closed her eyes and slept, and presently they woke her and setoff.

From "The Golden Compass" by Philip Pullman