marshaling assets

The principle that where two or more creditors seek satisfaction out of the assets of their debtor, the creditor who has a lien on only a part of the assets shall be protected so far as possible without doing violence to the rights of the other creditor or creditors. 35 Am J1st Marsh A § 2. The principle that where two or more creditors seek satisfaction out of the assets of their debtor and one of them can resort to two sources whereas another creditor has recourse to only one of the sources for example, where a senior or prior mortgagee has a lien on two parcels of land, and a junior mortgagee has a lien on only one of the parcels-the former may be required to seek satisfaction out of the fund which the latter creditor cannot touch, in order that the latter may, if possible, have his claim satisfied out of the fund which is subject to the claims of both creditors. Showmaker v White-Dulaney Co. 131 Wash 347, 230 P 162, 232 P 695. See inverse order of alienation.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

  • marshaling assets and securities — The process of organizing, ranking, and distributing funds in a manner set forth by law as being the most effective way to discharge debts that are owed to various creditors. Dictionary from West s Encyclopedia of American Law. 2005. marshaling… …   Law dictionary

  • marshaling liens — Determining the priority as between two or more liens. An expression sometimes loosely used for marshaling assets. See marshaling assets …   Ballentine's law dictionary

  • assets — The property of a natural person or a corporation, real or personal, corporeal or incorporeal, especially property which is subject to seizure under and sale under process for payment of debts. See admitted assets; assets of a debtor; assets of a …   Ballentine's law dictionary

  • marshaling securities — Same as marshaling assets …   Ballentine's law dictionary

  • Marshaling of assets — Marshaling Mar shal*ing, n. [Written also marshalling.] [1913 Webster] 1. The act of arranging in due order. [1913 Webster] 2. (Her.) The arrangement of an escutcheon to exhibit the alliances of the owner. [1913 Webster] {Marshaling of assets}… …   The Collaborative International Dictionary of English

  • Marshaling — Mar shal*ing, n. [Written also marshalling.] [1913 Webster] 1. The act of arranging in due order. [1913 Webster] 2. (Her.) The arrangement of an escutcheon to exhibit the alliances of the owner. [1913 Webster] {Marshaling of assets} (Law), the… …   The Collaborative International Dictionary of English

  • bill to marshal assets — See marshaling assets …   Ballentine's law dictionary

  • equity for marshaling — See equity to marshal assets …   Ballentine's law dictionary

  • marshal — mar·shal 1 / mär shəl/ n 1: a ministerial officer appointed for each judicial district of the U.S. to execute the process of the courts and perform various duties similar to those of a sheriff 2: a law officer in some cities (as New York) of the… …   Law dictionary

  • creditors' bill — An action or suit brought by a creditor to enforce the payment of a debt out of property or an interest of his debtor which cannot be reached by ordinary legal process. 21 Am J2d Cred B § 1. The term is also used broadly to refer to certain other …   Ballentine's law dictionary

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