An Obligor May Assert Rights of Setoff Arising Out of Entirely

question 19

True/False

An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

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Definitions:

Profit/Loss

The financial result of business operations or investment activities, calculated as the difference between revenues and the costs associated with generating those revenues.

Contract Size

The deliverable quantity of commodities or financial instruments specified in a contract that an investor agrees to buy or sell.

Hedge Strategy

Investment strategies designed to reduce the potential for loss in an investment portfolio by making counterbalancing investments or using financial instruments like options and futures.

Short Corn Futures

A financial contract obligating the seller to deliver corn at a future date, typically used to hedge or speculate on falling corn prices.