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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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Dkk
12:02
Just part of the culture.
BulbasaurNoLikeCardio
12:04
I wish that wearing a mask when sick stuck around as an okay thing like it is in the rest of the world, not all of us have enough sick days to be ditching work.
Dkk
12:04
Unless its like an N95 i dont think it will really do anything
12:04
there's even a mask ban in some places. altho one of my coworkers wears a mask anyway despite customers being rude to her about it
12:05
good morning
12:05
why does umiami ask "Are you applying, or have you applied, to other law schools? If so, please list them."
BulbasaurNoLikeCardio
12:05
One manager came in sick wearing a mask, got roasted and stopped wearing it that day. The entire office has been cycling sickness for two weeks now. It may not be super effective but it may help in slowing the spread during meetings when we have to be so close
12:05
am i the only one who has never gotten my status checker to work on here?
BulbasaurNoLikeCardio
12:06
@ChowieBean: want to see what schools they share an applicant pool with, think it is all data harvesting stuff no a +/- for the applicant
12:06
ok good cuz idk whether i wanna tell them or not
12:06
thanks bulbasaur
12:08
not to be that guy again but berkeley person/applicant id is back and Shiny New Logo
be that guy
EW THE NEW LOGO IS SO UGLY
WTF
12:09
need to send in my berkeley app rawwwww
BulbasaurNoLikeCardio
12:09
@ChowieBean: should be required to tell them, the schools who asked I only told them the schools in their area not all of them.
BulbasaurNoLikeCardio
12:10
*shouldnt be
12:12
@jackfrost11770: if i get a berk A today and they have that logo im withdrawing (/s /s /s /j /j /j)
babycat
12:12
@ChowieBean: me too lol. you applying to public interest scholars program?
12:14
yes def applying public interest
12:16
i was raised like blocks away from umiami
12:16
idk if i wanna go back to florida tho so im applying there as safety/target 💀
12:25
@ChowieBean: doing the same thing
Does anyone think au gonna get back to us today
My app was complete Oct 11
If yes what time
Dkk
12:29
Sure, yes! 11:22:24 PST
ClassyPleasantHeron
12:30
I wonder if Berk was updating their system so that they could watch more video.
1a2b3c4d26z
12:41
They updated it so they could watch my video one trillion times
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