Doctrine of Marshaling
/ˈdɒktrɪn əv ˈmɑːrʃəlɪŋ/
Definitions
- (n.) Equitable principle requiring a creditor with access to multiple funds or securities to satisfy its claims from those least burdensome to the debtor.
The court applied the doctrine of marshaling to protect the junior creditor's interests.
Related terms
See also
Commentary
Used primarily in creditor-debtor contexts to allocate assets fairly; typically arises in insolvency or security interest disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.