Some of you may have heard your attorney talk about the “equitable doctrine of marshalling.” This doctrine is sometimes used when a senior creditor has a lien that covers two separate funds owned by a borrower. If a junior creditor has recourse as to only one of those funds, the senior creditor may be required to exhaust the fund that is not available to the junior creditor before going after the other fund. (more…)
Posts Tagged ‘creditor’
What is Marshalling?
Friday, August 28th, 2009Impairment of Collateral: What are the costs?
Tuesday, July 28th, 2009The Indiana Supreme Court has ruled that the failure of a secured creditor to file a financing statement is considered an “impairment of collateral” which subjects the guarantor to unpredicted liability.