Definition of DEFICIENCY in Black's Law Dictionary 4th Edition – Legal dictionary – Glossary of legal terms.
Definition of DEFICIENCY
A lack, shortage or insufficiency. The amount by which the income tax imposed exceeds the amount shown as the tax by the taxpayer upon his return. American Woolen Co. v. United States, Ct.C1., 21 F.Supp. 1021, 1022.
That part of a debt secured by mortgage not realized from sale of mortgaged property. Harrow v Metropolitan Life Ins. Co., 285 Mich. 349, 280 N.W. 785, 787. A judgment or decree for the amount of such deficiency is called a "deficiency judgment" or "decree." Phillips v. Union Central Life Ins. Co.., C.C.A.Minn., 88 F.2d 188, 189 (judgment) ; Grace v. Hendricks, 103 Fla. 1158, 140 So. 790, 794 (decree).
Technically speaking, there is no such thing under our law as a "deficiency judgment" in the sense that a formal judgment of that description is rendered by the court, or entered by the clerk for the amount not made by the sale of the mortgaged property. There is only the original judgment for the full amount of the indebtedness, upon which a deficiency may exist after the issuance and return of the special execution, or even perhaps of one or more general executions in addition. It has nevertheless been customary in ordinary parlance to refer to the amount still due after the return of the special execution as a "deficiency judgment." Bank of Douglas v. Neel, 30 Ariz. 375, 247 P. 132, 134.
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That's the definition of DEFICIENCY in Black's Law Dictionary 4th Edition – Legal dictionary – Glossary of legal terms. Courtesy of Cekhukum.com.
