Marshalling in Europe
Definition of Marshalling
Where there are two creditors of the same debtor, ancf one creditor has a right to resort to two funds of the debtor for payment of his debt, and the other creditor has the right to resort only to one fund, the Court will order the first creditor to be paid out of the fund against which the second creditor has no claim, so far as that fund will extend, so as to leave as much as possible of the second fund for payment of the second creditor, and if the first creditor has already paid himself out of the second fund, the Court will allow the second creditor to stand in his shoes and resort to the first fund to the extent to- which the second fund has been exhausted by the first creditor. (Snell, p. 279.)
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Notice
Definition of Marshalling is, temporally, from A Concise Law Dictionary (1927). This page needs to be proofread.
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