Teacher:In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision. Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. The four incorrect answers are other holding statements. You should find the correct option. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Teacher: Now, understand the problem? Solve this instance: CSI loan. A bank can exercise its common-law right of setoff when: (1) there is mutuality of obligation between the bank and its customer; (2) the funds against which a setoff is exercised belong to the customer; (3) the money to be set off has been deposited into a general as opposed to a special, reserve, or trust account; and (4) the debt owed by the customer to the bank is mature. E.g., Firstar Eagan Bank, N.A. v. Marquette Bank Minneapolis, N.A., 466 N.W.2d 8, 12 (Minn.Ct.App.1991). Here, there was mutuality of obligation because the bank owed Brier the money attributable to the CD and Brier had guaranteed the CSI loan personally a loan that was in default when the bank set off the CD against the balance due on the loan. See In re Foutz, 271 F.Supp. 847, 849-50 (W.D.Va.1967) (<HOLDING>). In addition, Brier indisputably owned the CD,
Holding statements: (A) holding that bank had right to set off funds in a customers account against debt that the bank customer had incurred as a surety or guarantor (B) holding a bank officer who informed a third party that it would be safe to extend 8000 credit to bank customer although customer did not have an open account at the bank could be held liable for the material misrepresentation (C) holding that a bank customer did not have a reasonable expectation of privacy in records maintained by the bank (D) holding that debt from debtor to bank in the form of chargebacks to the debtors account for credit card transaction rescissions was prepetition debt even though customers rescinded transactions postpetition and the bank therefore chargedback postpetition because a customers right to rescind and thereby the banks right to chargeback accrued at the time the customer made a purchase even though such customer exercised his right to rescind postpetition (E) recognizing that a bank customer may have a tort claim against a bank for the wrongful dishonor of a check
Student:
(A)