Residual assets

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Residual assets

Assets that remain after sufficient assets are dedicated to meet all senior debtholders' claims in full.

Residual Assets

A person's or company's assets after all secured obligations have been paid. That is, the residual assets are those left over after all senior creditors have had their claims satisfied. For example, in a bankruptcy or other liquidation, the residual assets are those used to pay unsecured creditors or common shareholders, if any. See also: Precedence.
References in periodicals archive ?
Industry bodies are aware of the requirement for increased market educa- tion to inform investors about the risks particularly to Islamic finance including residual asset risk, Sharia interpretation risk and the difference sukuk structures combining Mudaraba and Murabaha in Saudi Arabia from those used elsewhere.
The accreted interest on the residual asset increases its carrying value at December 31, Year 1, to $62,001.
residual asset quality risk that could lead to a need to recapitalize
Goodwill is the residual asset recognized in a business combination after recognizing all other identifiable assets acquired and liabilities assumed.
The Bridgend firm will work to reduce the cost of engine operations and manage the residual asset value of each engine for the Russian airline.
In the HR project contract, the terminating clause stipulates that when G "guarantees" the purchase of TH assets, the price must be appraised by a professional appraisal agency, which usually takes the difference between the total investment (I), which does not include the land levied by G, and the asset depreciation (dt) as the evaluated residual asset value (St) within time t.
Even when a restaurant is struggling, "there is residual asset value that the shareholders would have a claim on -- that's the land," Bryan Elliott, an analyst at Florida-based Raymond James Financial, told Bloomberg.
Second, as the authors are aware, the treatment of the residual asset is currently very unsatisfactory.
Gain-on-sale accounting often results in a significant balance-sheet asset for originators--the residual asset.
7 million in direct support of NAVAIR life cycle support programs such as, Interim Supply Support, Residual Asset Management, and Special Tooling.
The "problem" enters with respect to the appropriate division of this residual asset value between the two parties.
dagger]Asset beginning book value (BV) $580,000 Accumulated depreciation (5 x $70,000) $350,000 BV at end of lease term $230,000 Disposal for expected fair value (FV) $225,000 Loss on sale of residual asset $5,000 [dagger] Assuming the residual is sold at the end of lease term for its expected FV.