Billy and Mary are couple. They maintain accounts in HSBC with the balances in the various accounts as follows:

Billy Current A/cHK$ 18,220 credit

Billy Loan a/cHK$ 80,000 debit

Billy & Mary Current A/cHK$6,000debit

Q1. Recently, a friend of Billy told the Relationship Manager that Billy is going to become insolvent. Based on this, the relationship manager worried that Billy cannot pay back the loan he owed to the bank. The relationship manager decided to exercise the right to "set-off" and transfer the credit balance of current account to the loan a/c. Please comment.

Q2. Assuming that Billy is not insolvent, can the bank exercise the right of set off by transferring the credit balance of current account to the loan a/c without the agreement of Billy? Can Billy protect himself from set-off? Please comment.

Q3. Can the bank exercise the right of set off by transferring the credit balance of Billy's current account to the joint account?