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Simple English definitions for legal terms
remnants and surpluses
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A quick definition of remnants and surpluses:
Remnants and surpluses: In maritime law, when a ship is sold, the money left over after paying the wages of the crew, loans taken out for the ship, services provided to save the ship, and supplies used on the ship is called remnants and surpluses.
A more thorough explanation:
Remnants and surpluses refer to the proceeds that remain after all the claims for seamen's wages, bottomry bonds, salvage services, and supplies have been paid from the sale of a ship. This term is commonly used in maritime law.
For example, if a ship is sold for $1 million and the total claims for seamen's wages, bottomry bonds, salvage services, and supplies amount to $800,000, then the remnants and surpluses would be $200,000.
Another example would be if a ship is sold for $500,000 and the total claims for seamen's wages, bottomry bonds, salvage services, and supplies amount to $600,000, then there would be no remnants and surpluses. In fact, there would be a deficit of $100,000 that would need to be paid.
These examples illustrate how remnants and surpluses are calculated and how they can either result in a profit or a loss depending on the total claims and the sale price of the ship.