Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

marshaling doctrine

Read a random definition: drug-free zone

A quick definition of marshaling doctrine:

The marshaling doctrine is a rule that says if a big creditor has the right to get money from two or more places to pay off what they are owed, and a smaller creditor can only get money from one place, the big creditor has to use the money from the places that the smaller creditor can't get money from first. This is called the rule of marshaling assets.

A more thorough explanation:

The marshaling doctrine is a principle that applies when a senior creditor has access to multiple funds to pay off their debt, while a junior creditor only has access to one fund. In this situation, the senior creditor must first use the funds that the junior creditor does not have access to before using the fund that the junior creditor relies on.

Let's say that a company owes money to two creditors: Bank A and Bank B. Bank A has a senior position and has access to two funds: Fund X and Fund Y. Bank B has a junior position and only has access to Fund Y. If the company defaults on its debt, Bank A must first use Fund X to pay off its debt before using Fund Y. Only after Bank A has exhausted Fund X can it use Fund Y. This ensures that Bank B has a chance to recover its debt from Fund Y.

This principle is important because it protects the rights of junior creditors and ensures that they have a fair chance to recover their debt. Without the marshaling doctrine, senior creditors could use all available funds, leaving junior creditors with nothing.

marshaling assets, rule of | marshaling the evidence

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
20:07
I am semi proficient in spanish.
20:08
nice same. This sounds bad but I do not like how spanish sounds.
20:09
or english for that matter
20:09
There is nothing wrong with that. I like all the languages. It is tones that annoy me.
20:10
and fabrics
20:14
@GalenMeric: Sorry, tones is what I meant. Are you a wool fabric fan?
20:40
I think my only wool piece is my suits, and I like those quite a bit.
21:11
Wool is the best fabric
21:12
I only buy wool, denim, leather, and loop wheel cotton
21:31
@NemoPropheta: Im on that polyester, nylon, spandex, rayon, and fleece grind fam
21:32
jk but fr: I was watching how to fold dress shirts so they do not wrinkle, and the dude did his folding on a wool blanket so that the wool fibers grabbed the cotton shirt (like velcro), that is smart asf
21:32
That is smart
21:33
I want a weatherwool blanket
21:33
But I hang my shirts but Ive heard arguments against it
21:34
Generally I fold knitwear and hang everything else
21:35
Cant wait to get that big law money and spend it all on clothes 🙏
21:37
@NemoPropheta: his point was to protect the collar at all costs, therefore fold most shirts. I HATE when collars be acting out, so I will adpot his method: https://www.youtube.com/shorts/QaVKudd36zc?feature=share
21:38
oh fr wearin a suit is so fun t. someone who wears a suit seldomly
21:40
Yeah that makes sense, I do hate when my collar stick out at the sides, I cant figure out how to iron them so they maintain their shape
21:48
collar stays may be the answer. also, shirt stays are goated
21:50
@NemoPropheta: those look so nice, but i feel like one spec of dirt or one crease will ruin ur week, even if the money means nothing?
23:18
Idk I like worm i
23:19
bruh
23:19
I like worn in leather, and dirt is easy enough to clean off*
OrangeThing
23:27
Am I still muted on here
OrangeThing
23:27
Oh I guess not
OrangeThing
23:27
Hello all
f$ll to MarqU baby
Ur-
0:34
@OrangeThing: Welcome back Renard99
LSD+ is ad-free, with DMs, discounts, case briefs & more.