Jingle Rule Law and Legal Definition
Jingle Rule is a rule of partnership law according to which partnerships assets are first distributed to partnership creditors, while each partner's assets are first distributed to that partner's creditors. It was only after fully satisfying either the partner's or the partnership's own creditors that any distributions would be made to the creditors of the other entity. This rule was repealed by the bankruptcy laws and the Revised Uniform Partnership Act. [11 USCS § 723]. A partnership trustee now has the right under 11 U.S.C. § 723(c) to share in the distribution of the proceeds acquired by the liquidation of a partner's estate, without subordination to the partner's individual creditors.
Jingle Rule is also known as Dual-Priorities rule.
