Reply #90: Don't think that USAA wouldn't use right of setoff [View All]

31. Security Interest; Setoff.
a. Account Holder agrees that the Account secures all debts
and liabilities of Account Holder to Bank, however and
whenever incurred or evidenced, including debt which may
be purchased or otherwise acquired by Bank from others,
whether direct or indirect, absolute or contingent, due or
to become due. Account Holder assigns as security to
Bank all balances, credits, deposits, monies and items
now or hereafter in the Account (with the exception of
credit card debt.)

b. Account Holder agrees that Bank is authorized at any time
to set-off the Account against Account Holder’s debts or
liabilities to Bank, without notice to Account Holder. Bank
shall not be liable for dishonoring items where such setoff
results in insufficient funds in the Account to honor items
drawn on the Account. Funds received by Bank pursuant
to its security interest or right of set-off may be applied
first to the discharge of the unsecured part of any debt or
liability of Account Holder to Bank, and thereafter to the
discharge of the secured portion, if any, of Account Holder’s
debt or liability to Bank.

c. If the Account is designated a Joint Account on the
signature card, each Account Holder agrees that Bank may
set-off the entire amount in the Account against the debt
or liability to Bank of any Account Holder on the Account,
notwithstanding the interest of other Account Holders in
the Account. Each Joint Account Holder agrees to hold
Bank harmless and indemnify Bank for any losses,
expenses and costs, including attorney’s fees, incurred
by Bank in enforcing Account Holders’ agreement to be
jointly and severally liable for overdrafts or other losses
suffered by the Bank on the Account and to permit setoff
of the Account against one another’s debts or liabilities
to Bank.