Upset Price

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Upset Price

The dollar amount below which property, either real or personal, that is scheduled for sale at an auction is not to be sold.

An upset price is intended as a minimum price. In a decree for a Judicial Sale, it constitutes a direction to the officer conducting the sale not to accept any bid that falls below the fixed price. In a final decree in a foreclosure sale, an upset price should be sufficient to cover costs and allowances made by the court, the certificates and interest of the receiver, and any liens in existence.

References in periodicals archive ?
and upset price. It so happened, then, that those who criticized
A hypothetical example can clarify how the imposition of upset prices could solve the hold-out problem and motivate junior claimants to invest in the reorganized railroad.
Upset prices could reflect scrap values, on-going value, a purely "nominal value," or the "highest figure which will permit the reorganization to succeed."(38) In practice, courts leaned toward low upset values.(39) Weiner reports evidence that upset values typically ranged from 10% to 80% of the traded market value of the claims.(40) Thus, low upset values probably played a key role in forcing junior claimants to accept the terms of reorganization plans, as they gave all parties strong incentives to make the voluntary plan work.