(א) הַנִּזָּקִין שָׁמִין לָהֶם בְּעִדִּית וּבַעַל חוֹב בְּבֵינוֹנִית, וּכְתֻבַּת אִשָּׁה בְּזִבּוּרִית. רַבִּי מֵאִיר אוֹמֵר, אַף כְּתֻבַּת אִשָּׁה בְּבֵינוֹנִית:

(1) Damages are paid out of [property of] the best quality; A creditor pays out of land of medium quality, And a ketubah is paid out of land of the poorest quality. Rabbi Meir says that a ketubah is also paid out of medium quality land.

אֵין נִפְרָעִין מִנְּכָסִים מְשֻׁעְבָּדִים בִּמְקוֹם שֶׁיֵּשׁ נְכָסִים בְּנֵי חוֹרִין, וַאֲפִלּוּ הֵן זִבּוּרִית. אֵין נִפְרָעִין מִנִּכְסֵי יְתוֹמִים, אֶלָּא מִן הַזִּבּוּרִית:
Payment cannot be recovered from mortgaged property where there free property is available, even if it is only of the lowest quality. Payment can be recovered from orphans only from land of the lowest quality.

Damages are paid out of [property of] the best quality; The rule that damage payments are made out of the best of one’s land is seemingly stated in Exodus 22:4, “When a man lets his livestock loose to graze in another’s land, and so allows a field or vineyard to be grazed bare, he must repay the best of his field and the best of his vineyard.” However, there is a debate over this issue. Rabbi Akiva interpreted this to mean that the damager must pay back from the best of his (the damager’s) land and Rabbi Ishmael interpreted it to mean that the damager must pay back with land equivalent to the best of the other person’s land. If this mishnah goes according to Rabbi Ishmael than the “tikkun olam” is that although the Torah does not demand that the damager pay back from the best of his own land, the rabbis demanded that he do so in order to deter people from being negligent and causing damage. If the mishnah goes according to Rabbi Akiva, then the Torah itself ruled because of tikkun olam. Although tikkun olam usually implies a rabbinic enactment, this is not always the case.

A creditor pays out of land of medium quality, According to the Talmud, Torah law dictates that when a debtor collects land in payment of his debt, he collects from the debtor’s worst property. Seemingly this would be good for debtors, certainly a noble goal. The problem with this is that it might end up deterring lenders and thereby make it difficult for people to get the loans they need (especially if they are farmers.) People will be hesitant to lend money if they know that if the debtor defaults they will collect from lousy land. In order to encourage people to lend money (remember it was without interest, so lending was a form of charity), the rabbis enacted that if a debtor defaults the creditor collects from property of medium quality.

And a ketubah is paid out of land of the poorest quality. Rabbi Meir says that a ketubah is also paid out of medium quality land. There is a debate over what type of land a woman receives upon collecting her ketubah. Collecting a ketubah is like collecting any debt the husband (or his estate) is a debtor to the woman. Therefore Rabbi Meir holds that just as usual debts are collected from middle quality land, so too is the ketubah debt. However, the first opinion in this mishnah holds that normal debts are not totally analogous to ketubot. With regard to a normal debt, the rabbis ruled that it is collected from middle quality land in order to encourage people to loan money. No such encouragement is needed with regard to ketubot, for women will marry whether they will collect their ketubah from middle or poor quality land. Since there is no special reason that the woman should collect her ketubah from middle quality land, she collects from poor quality land, as is the Torah’s rule for all debts.

דתניא אמר ר"ש מפני מה אמרו הניזקין שמין להן בעידית מפני הגזלנים ומפני החמסנין כדי שיאמר אדם למה אני גוזל ולמה אני חומס למחר ב"ד יורדין לנכסי ונוטלין שדה נאה שלי וסומכים על מה שכתוב בתורה מיטב שדהו ומיטב כרמו ישלם לפיכך אמרו הניזקין שמין להן בעידית
This is as it is taught in a baraita (Tosefta, Ketubot 12:2) that Rabbi Shimon said: For what reason did the Sages say that the court appraises land of superior-quality for payment to injured parties? It is due to the robbers and due to those who take that which is not theirs by force [ḥamsanin]. How so? So that a person will say: Why should I rob and why should I take by force? Tomorrow the court will come down to my property and take my finest field in order to compensate the victim for what I have robbed or taken by force. And the Sages rely on what is written in the Torah: “Of the best of his own field, and of the best of his own vineyard, shall he pay” (Exodus 22:4). Consequently, they said that the court appraises land of superior-quality for payment to injured parties.
מפני מה אמרו בעל חוב בבינונית כדי שלא יראה אדם לחבירו שדה נאה ודירה נאה ויאמר אקפוץ ואלונו כדי שאגבנו בחובי לפיכך אמרו בע"ח בבינונית
The baraita continues: For what reason did the Sages say that a creditor collects his debt from intermediate-quality land? It is so that a person should not see another’s fine field or fine house and say: I will jump in and lend him money so that later I will collect the field or house for my debt, if the borrower does not have enough money to repay the loan. Therefore, the Sages said that a creditor collects his debt only from intermediate-quality land, and he would not receive that fine field that would have prompted him to extend the loan in the first place.
אלא מעתה יהא בזיבורית א"כ אתה נועל דלת בפני לווין
The Gemara asks: If it is so that the objective is that people not be tempted to lend money for the purpose of acquiring the borrower’s property should he default on the loan, then the halakha governing a creditor should be to collect his debt from inferior-quality land. The Gemara answers: If so, then you would be locking the door before potential borrowers, as no one would be willing to lend them money.
כתובת אשה בזיבורית דברי ר' יהודה ר"מ אומר בבינונית אמר ר"ש מפני מה אמרו כתובת אשה בזיבורית שיותר ממה שהאיש רוצה לישא האשה רוצה לינשא
The baraita continues: Payment of a woman’s marriage contract is collected from inferior-quality land; this is the statement of Rabbi Yehuda. Rabbi Meir says: It can be collected from intermediate-quality land. Rabbi Shimon said: For what reason did the Sages say that a woman’s marriage contract is collected from inferior-quality land? It is because more than a man wants to marry a woman, a woman wants to become married to a man. Consequently, she will agree to marry even if she knows that she will not be able to collect payment of the marriage contract from superior-quality land.