Also known as: accumulating surplus · accumulate surplus · retained earnings · surplus
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An excess amount realized from a foreclosure sale after the mortgage debt and costs have been paid. The surplus is distributed first to junior lienholders in order of priority and then to the holder of the equity of redemption.
An excess amount realized from a foreclosure sale after the mortgage debt and costs have been paid. The surplus is distributed first to junior lienholders in order of priority and then to the holder of the equity of redemption.
Field Power foreclosed on its first mortgage after Royal Power defaulted. The auction brought in proceeds well above the loan balance plus costs. The resulting surplus was first used to satisfy the City's recorded tax liens that attached to the property before default, then any remainder went to Royal Power as holder of the equity of redemption.
Remaining assets of a limited partnership or limited liability company after discharge of obligations to creditors. The surplus is distributed first to owners of transferable interests for the value of unreturned contributions and then among those owners in proportion to their rights to share in distributions immediately before dissolution.
After paying all creditors, Alpine Mining had $180,000 left. The general partner first returned the $120,000 in unreturned capital contributions to the limited partners according to their transferable interests. The remaining $60,000 was then allocated among those partners in proportion to their rights to distributions immediately before dissolution.
Remaining assets of a limited partnership or limited liability company after discharge of obligations to creditors. The surplus is distributed first to owners of transferable interests for the value of unreturned contributions and then among those owners in proportion to their rights to share in distributions immediately before dissolution.
Each sense below has its own examples, sources, and questions.
Antonio Alvarado held a recorded second mortgage on the property. When the senior mortgagee foreclosed and the sale produced excess proceeds after the first debt was paid, Antonio received payment from the surplus in the order of his lien priority before any balance reached the mortgagor.
After the foreclosure sale satisfied the mortgage and all junior liens, the remaining accumulated surplus was paid directly to Andrew Avery as the holder of the equity of redemption.
The surplus is first applied to junior lienholders in order of their priority. Any remaining balance is then paid to the holder of the equity of redemption.
No. Senior lienors have no lien claim to a surplus produced by the foreclosure of a junior mortgage because their liens remain on the real estate and are unaffected by the junior foreclosure.
No. The parties to a senior mortgage may not use mortgage terms to vary the principles governing disposition of a surplus. Junior lienholders and other foreclosed interests receive the benefits the rule confers regardless of such language.
Apex Dynamics completed winding up by satisfying all creditor claims. With $95,000 remaining, the company first paid each member the value of unreturned contributions. Any leftover amount was then divided among the members in proportion to their respective rights to share in distributions immediately before dissolution.
Azure Solutions wound up its affairs after satisfying creditors. The remaining funds were first applied to return each partner's unreturned capital contributions. Any additional surplus was then shared among the partners according to their pre-dissolution distribution rights.
After creditors are paid, surplus goes first to owners of transferable interests for the value of unreturned contributions, then among those owners in proportion to their pre-dissolution distribution rights.
Any available surplus is distributed among the owners of transferable interests in proportion to the value of their respective unreturned contributions.
…20%. The report also concluded that Trans Union would have about $195 million in spare cash between 1980 and 1985, "with the surplus growing rapidly from 1982 onward." The report referred to the ITC situation as a "nagging problem" and, given that problem, the leasing company "would still appear to be constrained to a…