Legal Dictionary of Pakistan

rule of marshaling assets

An equitable doctrine that requires a senior creditor, having two or more funds to satisfy its debt, to first dispose of the fund not available to a junior creditor. ( It prevents the inequity that would result if the senior creditor could choose to satisfy its debt out of the only fund available to the junior creditor and thereby exclude the junior creditor from any satisfaction. - Also termed rule of marshaling securities; rule of marshaling remedies.