If a claim exceeds the bond amount, what happens to the proceeds?

When a claim exceeds the bond amount, the proceeds are distributed pro-rata among the claimants. This means that each claimant will receive a portion of the available funds in proportion to the amount of their claim relative to the total claims being made. This method ensures a fair distribution among all parties who have legitimate claims when the total claims surpass the available bond amount.

Pro-rata distribution is commonly used in financial and legal contexts where resources are limited, allowing for equitable treatment of all claimants rather than favoring any single individual or group. This method underscores the principle that when resources are scarce, all involved should share in the allocation based on their stakes or claims. In contrast, returning funds to the dealer, splitting them evenly, or redirecting them to the state would not address the issue of fair compensation for the claimants involved.