We received a Dept of Rev levy for one of our customers. This customer has a line of credit for up to $80,000. We took his deposit account as security and have a security agreement in place for the full $80,000. He’s used (and owes the bank) $50,000 of that line. There is $70,000 in his deposit account and the levy is for $6000. Can we claim the entire $80,000 for right of setoff or can we only claim the $50,000 since that is what he currently owes?

Not knowing MN law, if I ran across this in Texas, the only person I would even listen to is my legal counsel. It could be an expensive mistake if you get it wrong.