[CLBS] If creditor has a UCC-1 against an entity, can it offset from accounts in principals' names?

[Holly Roark]

Bank has a blanket lien on all assets and filed a UCC-1 against Debtor.
Debtor closed bank account with Bank.  UCC-1 statement only names Debtor and
says nothing about any other entities or principals of borrower/debtor.
Debtor has accounts at Bank in the name of the principals of Debtor, and in
the name of other entities that the principals own. May Bank legally offset
any sums owed by Debtor from the other accounts in the name of the
principals and in the name of the other entities that the principals own?  I
need to talk to bank about a cash collateral issue before we file CH 11, but
I don't want to set Bank loose on the other accounts by having this
discussion.  Currently, Debtor is not in default to Bank.

 

Best regards,

HOLLY ROARK

Attorney at Law 

Certified Bankruptcy Specialist -

By the State Bar of California Board of Legal Specialization

 

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