If another team signs a released player who had a guaranteed contract (as long as the player has cleared waivers -- see question number 54), the player's original team is allowed to reduce the amount of money they still owe the player (and lower their team salary) by a commensurate amount (this is called the right of set-off). This is true if the player signs with any professional team -- it doesn't even have to be an NBA team. The amount the original team gets to set off is limited to one-half the difference between the player's new salary and the minimum salary for a one-year veteran (if the player is a rookie, then the rookie minimum is used instead).
For example, suppose a fifth-year player is waived during the 2005 offseason, with one guaranteed season remaining on his contract. If this player signs a $1 million contract with another NBA team for the 2005-06 season, his original team gets to set off $1 million minus $641,748 (the minimum for a one-year veteran in 2005-06), divided by two, or $179,126. If this player had a $5 million salary with his prior team, then his prior team would be responsible for the remaining $4,820,874. Note that between his prior team and new team the player will earn a combined $5,820,874, which was more than he made prior to being waived.