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LSDefine

Simple English definitions for legal terms

trust-fund doctrine

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A quick definition of trust-fund doctrine:

The trust-fund doctrine is a rule that says when a company goes bankrupt, all the things it owns, including the money people paid to buy its stock, are held in a special fund. This fund is used to pay back the company's creditors, the people it owes money to. The creditors can take things from the fund to help pay off what they are owed, unless someone else bought something from the company without knowing about the bankruptcy. This rule is also called the trust-fund theory.

A more thorough explanation:

The trust-fund doctrine is a principle that states that the assets of an insolvent company, including paid and unpaid subscriptions to the capital stock, are held as a trust fund. This fund is used to pay the company's creditors. The creditors may follow the property constituting this fund and use it to reduce the debts, unless it has passed into the hands of a bona fide purchaser without notice. This principle is also known as the trust-fund theory.

Let's say a company goes bankrupt and owes money to its creditors. The trust-fund doctrine ensures that the assets of the company are held in trust for the benefit of the creditors. This means that the creditors can use the assets to pay off the debts owed to them. For example, if the company owns a building, the creditors can sell the building to pay off the debts.

Another example is if a company has received money from investors for shares in the company. If the company becomes insolvent, the trust-fund doctrine ensures that the money paid by the investors is held in trust for the benefit of the creditors. The creditors can use this money to pay off the debts owed to them.

These examples illustrate how the trust-fund doctrine works in practice. It ensures that the assets of an insolvent company are used to pay off the debts owed to the creditors.

trust estate | trust indenture

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to be fair this accurately represents my mental state
election day psychosis coming in hot (fordham)
usc pls pull through .....
i literally just need one A so i can relax before my ED decision
WorthlessAttractiveZombie
9:38
oh that's right USC might release
soapy
9:43
USC still has not looked at my app
WorthlessAttractiveZombie
9:43
when did you submit soapy?
soapy
9:44
10/16
WorthlessAttractiveZombie
9:44
to be fair it took them almost 2 months for me to go under review
soapy
9:44
Feelin a bit stressed, as I've got no date change for Michigan either despite applying 10/7
WorthlessAttractiveZombie
9:45
I have not had a date change either for Mich but I've seen people get in without one so who knows
I applied 9/25 to like 6 schools and some (Houston) have no date change yet so dw
soapy
9:46
But do people get in without addresses going long?
WorthlessAttractiveZombie
9:46
it's tough to tell because a lot of people type out their addresses long to begin with
soapy
9:46
Ah. I didn't. Looking back, my Mich supplement kind of sucks, so there's that
Mich overrated (Dean Z please let me in even tho i didnt apply and I am below both 25ths)
ClassyPleasantHeron
10:01
The "date changes" at Michigan really don't mean anything. We had to do them in undergrad admissions whenever a Georgia applicant picked the country instead of the state, because we'd have to remove the TOEFL requirement and reassign the application from the international application readers.
soapy
10:06
Classy, does that mean they may look at your application, and that look doesn't necessarily trigger any date change?
1a2b3c4d26z
10:06
Man
1a2b3c4d26z
10:07
Walkin to the bus
1a2b3c4d26z
10:07
What a good day to get into law school
ClassyPleasantHeron
10:11
@soapy: I don't know for sure about the law school. For undergrad, once the application is complete, it's assigned to a reader the following Monday. If we had to make any changes, it's because a reader saw something that needed to be changed and the application needed to be re-read after that change.
soapy
10:12
Ahh, got it. Thank you for the insight!
ClassyPleasantHeron
10:14
You're welcome. FWIW, I have no idea what's up with the address changes. We didn't have to do any of that, except for the Georgia state vs country kinds of things.
soapy
10:15
I've heard it theorized that some schools will change the address from "St." --> "Street" as they prepare to send out admissions packets. That's the rumor, anyways.
i think it just indicates a change in status like under review or stages of review
my stanford address went long as soon as it was marked complete lmao
soapy
10:25
I saw some Reddit adcom say that they can see any time we refresh the status checker; I wonder if it's a red flag if an applicant's checked it like 50 times in a day?
soapy
10:25
Also, can we send another LoR to a school that we've already applied to?
soapy
10:26
Or another essay?
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