Application of assets

I believe that this expression relates to the situation where, in the process of conducting a liquidation, the liquidator has deposited a sum of money into a holding account. The reason for such an action would typically be to allow sufficient time to elapse to be certain that all valid claims have been received for that class of creditor

That set-aside fund of money will be accruing interest in the time between depositing the funds in an interest-earning account and the date of its due distribution

When the liquidator is satisfied that all relevant claims have been received and that it’s now time to make a distribution to that class of creditor, the fund will have grown by the amount of the interest earned on that deposit account and it’s that post-liquidation interest that is to be distributed as though it were ‘attached’ to the deposited fund

OK?

Incidentally Sacca, I don’t know whether you have noticed that some of your earlier threads have been added to by a student with the moniker sm8980 who wishes to invite you to be a study buddy for the FA exam

OK?