Without qualifying any other statutory right to setoff or lien and subject to any contractual provision, if a party is indebted to a financial institution, the financial institution has a right to setoff against the account. The amount of the account subject to setoff is the proportion to which the party is, or immediately before death was, beneficially entitled under section 30-2722 or, in the absence of proof of that proportion, an equal share with all parties.
Source:Laws 1993, LB 250, § 19.
A bank has no right of setoff against the beneficial interest contributed by a nondebtor depositor. Where there is a joint account and proof of net contributions, the amount subject to setoff by the bank is determined by a party's net contribution. Craig v. Hastings State Bank, 221 Neb. 746, 380 N.W.2d 618 (1986).
If a person has the right to withdraw funds from a joint account and is indebted to the bank where the account is maintained, the bank has a right of setoff against such indebtedness. Craig v. Hastings State Bank, 221 Neb. 746, 380 N.W.2d 618 (1986).
This section is subject to agreements between a bank and its depositor. A bank may define by contract with its depositor the extent of its power of setoff. Uttecht v. Norwest Bank of Norfolk, 221 Neb. 222, 376 N.W.2d 11 (1985).