What does it mean to sequester funds?

A sequestered account is a deposit account that is seized through legal action or court order. Funds cannot be removed from a sequestered account without the approval of the seizing party. Sequestered accounts are usually separated from other accounts and kept in a separate file.

What triggers budget sequestration?

L. 112-155) requires the president to submit a report to Congress on a potential sequestration which may be triggered by the failure of the “Super Committee” to propose and for Congress to enact, a plan to reduce the U.S. Federal Budget by $1.2 trillion as required by the Budget Control Act.

What is exempt from sequestration?

While some programs—such as Medicaid (Medi-Cal), Pell Grants, and Social Security benefits—are exempt from sequestration, many others—like Medicare, Workforce Investment Act, and Head Start—are not.

What does government sequestration mean?

Sequestration refers to automatic spending cuts that occur through the withdrawal of funding for certain (but not all) government programs.

How is sequestration calculated?

A provider bills a service with an approved amount of $100.00, and $50.00 is applied to the deductible. A balance of $50.00 remains. We normally would pay 80% of the approved amount after the deductible is met, which is $40.00 ($50.00 x 80% = $40.00).

What is the purpose of sequestration?

The main purpose of sequestration is for the orderly and equitable distribution of the proceeds of the debtor’s assets where all of his creditors cannot be paid in full. Sequestration is aimed at dividing the debtor’s assets in accordance with a fair pre-determined ranking of creditors.

What does to be sequestered mean?

1 : to place (as a jury or witness) in seclusion or isolation. Note: Juries are sequestered in order to preserve their impartiality. Witnesses are sequestered so that their testimony is not influenced by the testimony of prior witnesses. 2a : to seize especially by a writ of sequestration.

What is the difference between liquidation and sequestration?

The term “liquidation” refers to the bankruptcy of a company or close corporation and certain other legal entities. “The term “sequestration”refers to the bankruptcy of a natural person or a trust. “Surrender of estate” refers to the process where a natural person asks a court to declare him insolvent.

What is budget sequestration quizlet?

Sequestration is a term used to describe the practice of using mandatory spending cuts in the federal budget if the cost of running the government exceeds either an arbitrary amount or the the gross revenue it brings during the fiscal year.