N.Y. Debtor & Creditor Law § 192: Set-off of mutual debts or credits

§ 192. Set-off of mutual debts or credits. Where mutual credit has

been given by any debtor, except a debtor proceeding under the fifth

article of this chapter, and any other person, or mutual debts have

subsisted between such debtor and any other person, the trustees may set

off such credits or debts, and pay the proportion or receive the balance

due. But no set-off shall be allowed of any claim or debt, which would

not have been entitled to a dividend as hereinbefore directed.