On Demand Webinar

Liens on Shares and Right of Offset
in Collections and Bankruptcy Cases

A NorthLegal Webinar presented April 18, 2024
Duration: 2:02 hrs:minutes

Cost | How to Attend | How to Obtain Handouts Register

If Bob owes money to your credit union, may you take whatever funds he has on deposit and apply them to the debt? If you can't take them, can you at least "freeze" those funds? Does the source of the funds matter?

Contrary to what you may have heard, there is no simple answer to these questions. Like many legal issues, understanding your credit union's rights and obligations requires you to consider a number of things, including whether the member is in default, whether the member is in bankruptcy, whether the credit union is state or federally chartered, what type of credit obligation (credit card, auto deficiency, real estate) is involved, and the source of the funds in the account.

The rules aren't hard to learn for those who will try, and a credit union that understands the source and limitations on its right to apply shares to the member's loan balance has a valuable recovery tool. A credit union that applies shares (or even that releases shares to the member!) without understanding those rules runs a serious risk of liability. 

During this program, attorney Eric North discusses the details you need to know in order to make the most of your rights with respect to deposit accounts in collection and bankruptcy actions. During this program, you will learn:

When you may (and when you may not) apply shares to a loan or other obligation.
Do you know that you should have two similar, but separate "lien on shares" clauses in your credit agreements?
When to take funds and when to "freeze" funds.
How just using the wrong terminology may defeat your right to take shares.
The important (and easy) step federal (and some state) credit unions should take before a borrower is delinquent in order to preserve your rights if the borrower later becomes delinquent.
The important "exceptions" that may prohibit you from taking or freezing deposits.
What the NCUA requires federal credit unions to do in order to preserve their statutory lien rights—and why state credit unions should consider doing it too!
The special rules relating to taking shares to cover credit cards.
Limitations on taking Social Security, SSI or Veterans' benefits.
What rights you keep and what rights you lose when a member files bankruptcy.

Protect your credit union from litigation and significant liability by learning to understand and comply with this increasingly important law!



NOTE: This program is intended only for employees of consumer lending institutions. Please contact NorthLegal Training and Publications to obtain approval before registering if you are not an employee of a consumer lending institution.

The fee to attend this archived program is $190.00 if paid by credit card or $200.00 if paid by check. For that fee, you or someone from your financial institution may view this program as often as you like for a period of 180 days. (NOTE: If your financial institution registered for the live program, you already have free access to the archvied version for six months! Contact NorthLegal for information.)

How to Attend an On Demand Webinar | How to Obtain Handouts
To attend this NorthLegal Webinar, please do the following:

Register.  To register online using a credit card, visit the "Register" link, above. To register by mail, call NorthLegal at 623.537.7150.
Check your email. Within moments after you complete the registration process you should receive two emails.  One will be a receipt for the transaction and the other will contain a link and instructions explaining how to use that link to attend the program. 
Download the handout materials using the link appearing in the confirmation email. The confirmation email also includes the password needed to open the materials.
» NorthLegal Webinars

Speaker: Eric North

Eric North is an attorney who represents the interests of credit unions and other financial institutions respect to litigation, compliance, governance, bankruptcy and collections matters. Eric has appeared in state and federal courts throughout the State of California, and has argued before the Ninth Circuit Court of Appeal.

Eric is also a nationally recognized speaker on legal issues relating to consumer lending institutions, and has presented hundreds of programs on behalf of national, state and local leagues and associations from around the country.

Live program scheduling conflict?

No problem! Registration for a NorthLegal webinar automatically entitles you to watch it live AND to watch the archived version as many times as you like for 180 days! 

If you or your staff can't make the live program, you still have plenty of time to watch at a time that is more convenient for you!