marshaling
- A legal principle that applies when two lenders have claims on the same set of assets, and one lender has additional claims on other assets. In such a scenario, the principle mandates that the latter lender must get paid from the additional set of assets, so as to not deplete the shared assets, which is the only source for the former lender to recover their money
- In order to receive money from the debtor's property, the bank had to follow the principle of marshaling.
- Marshaling was applied in the case to determine which creditor had a right to specific assets.
- To ensure fair distribution of assets among creditors, marshaling practices were employed.
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