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Simple English definitions for legal terms
antideficiency statute
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A quick definition of antideficiency statute:
An antideficiency statute is a law that helps prevent the government from spending more money than it has. It can also limit the rights of creditors to get more money than what was agreed upon. This is important because it helps keep the government and its finances in check.A more thorough explanation:
An antideficiency statute is a type of legislation that limits the government's ability to spend money beyond what has been allocated in the budget. It is also known as an antideficiency law.
For example, if a government agency has a budget of $100,000 for a project, but ends up spending $120,000, an antideficiency statute would prevent the agency from spending the extra $20,000 without proper authorization.
Another example of an antideficiency statute is one that limits the rights of secured creditors to recover in excess of the security. This means that if a creditor has a security interest in a property, they cannot recover more than the value of the property.
Antideficiency statutes are important because they help prevent government agencies from overspending and going beyond their allocated budgets. This helps ensure that taxpayer money is being used responsibly and efficiently.