deficiency judgment

deficiency judgment definition - business

deficiency judgment

A court order authorizing a lender to collect the portion of a debt that has not been satisfied by the sale of collateral. For example, a bank may sell a car that has been repossessed because the borrower defaulted on the loan. If the sale price is less than the remaining balance on the loan, the bank will obtain a deficiency judgment for the difference.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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