Priority of Satisfaction of Claims

Priority of Satisfaction of Claims

 

under Soviet law, the legally established order in which payments are made when the debtor does not have sufficient monetary resources to satisfy all the demands of the creditors. Demands are divided into five groups, or orders, and the demands of creditors in each successive group are satisfied after the demands of the preceding group have been fully met. If monetary resources are insufficient to satisfy the demands of a group, payment is made in proportion to the amount awarded to each creditor. The priority of satisfaction of claims against the accounts of enterprises and organizations at credit institutions is determined by USSR law, and the priority of satisfaction of claims during execution of court decisions in civil cases is established by the civil procedural codes of the Union republics. Claims of the first order include alimony, wages, compensation for harm caused by injury or death, and social insurance payments.

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