diff --git a/src/ripple/app/tx/impl/Payment.cpp b/src/ripple/app/tx/impl/Payment.cpp
index 7e058d06e39..10b69fd582d 100644
--- a/src/ripple/app/tx/impl/Payment.cpp
+++ b/src/ripple/app/tx/impl/Payment.cpp
@@ -78,11 +78,15 @@ Payment::preflight(PreflightContext const& ctx)
     else if (saDstAmount.native())
         maxSourceAmount = saDstAmount;
     else
+    {
+        auto const& asset = saDstAmount.getAsset();
+        auto const iss = asset.isMPT() ? Issue{asset} : Issue{asset, account};
         maxSourceAmount = STAmount(
-            {saDstAmount.getAsset(), account},
+            iss,
             saDstAmount.mantissa(),
             saDstAmount.exponent(),
             saDstAmount < beast::zero);
+    }
 
     auto const& uSrcCurrency = maxSourceAmount.getAsset();
     auto const& uDstCurrency = saDstAmount.getAsset();
@@ -314,11 +318,15 @@ Payment::doApply()
     else if (saDstAmount.native())
         maxSourceAmount = saDstAmount;
     else
+    {
+        auto const& asset = saDstAmount.getAsset();
+        auto const iss = asset.isMPT() ? Issue{asset} : Issue{asset, account_};
         maxSourceAmount = STAmount(
-            {saDstAmount.getAsset(), account_},
+            iss,
             saDstAmount.mantissa(),
             saDstAmount.exponent(),
             saDstAmount < beast::zero);
+    }
 
     JLOG(j_.trace()) << "maxSourceAmount=" << maxSourceAmount.getFullText()
                      << " saDstAmount=" << saDstAmount.getFullText();
diff --git a/src/ripple/ledger/impl/View.cpp b/src/ripple/ledger/impl/View.cpp
index 82bb98ef2e2..9364d611c8a 100644
--- a/src/ripple/ledger/impl/View.cpp
+++ b/src/ripple/ledger/impl/View.cpp
@@ -239,12 +239,14 @@ accountHolds(
 
     if (asset.isMPT())
     {
-        Issue iss{asset, issuer};
+        Issue iss{asset};
         if (auto const sle = view.read(keylet::mptoken(asset, account)))
-            return STAmount{
-                iss,
-                sle->getFieldU64(sfMPTAmount) -
-                    sle->getFieldU64(sfLockedAmount)};
+        {
+            auto const amt = sle->getFieldU64(sfMPTAmount);
+            auto const locked = sle->getFieldU64(sfLockedAmount);
+            if (amt > locked)
+                return STAmount{iss, amt - locked};
+        }
         return STAmount{iss, 0};
     }
 
@@ -1734,10 +1736,18 @@ rippleMPTCredit(
         auto const mptokenID = keylet::mptoken(mptID.key, uSenderID);
         if (auto sle = view.peek(mptokenID))
         {
-            sle->setFieldU64(
-                sfMPTAmount,
-                sle->getFieldU64(sfMPTAmount) - saAmount.mpt().mpt());
-            view.update(sle);
+            auto const amt = sle->getFieldU64(sfMPTAmount);
+            auto const pay = saAmount.mpt().mpt();
+            if (amt >= pay)
+            {
+                if (amt == pay)
+                    sle->makeFieldAbsent(sfMPTAmount);
+                else
+                    sle->setFieldU64(sfMPTAmount, amt - pay);
+                view.update(sle);
+            }
+            else
+                return tecINSUFFICIENT_FUNDS;
         }
     }
 
@@ -1745,10 +1755,15 @@ rippleMPTCredit(
     {
         if (auto sle = view.peek(mptID))
         {
-            sle->setFieldU64(
-                sfOutstandingAmount,
-                sle->getFieldU64(sfOutstandingAmount) - saAmount.mpt().mpt());
-            view.update(sle);
+            auto const outstanding = sle->getFieldU64(sfOutstandingAmount);
+            auto const redeem = saAmount.mpt().mpt();
+            if (outstanding >= redeem)
+            {
+                sle->setFieldU64(sfOutstandingAmount, outstanding - redeem);
+                view.update(sle);
+            }
+            else
+                return tecINSUFFICIENT_FUNDS;
         }
         else
             return tecINTERNAL;
diff --git a/src/test/app/MPToken_test.cpp b/src/test/app/MPToken_test.cpp
index 4ccd4068bbb..aae5d66f028 100644
--- a/src/test/app/MPToken_test.cpp
+++ b/src/test/app/MPToken_test.cpp
@@ -40,6 +40,20 @@ class MPToken_test : public beast::unit_test::suite
         return amount == expectedAmount;
     }
 
+    [[nodiscard]] bool
+    checkMPTokenOutstandingAmount(
+        test::jtx::Env const& env,
+        ripple::uint256 const mptIssuanceid,
+        std::uint64_t expectedAmount)
+    {
+        auto const sleMpt = env.le(keylet::mptIssuance(mptIssuanceid));
+        if (!sleMpt)
+            return false;
+
+        std::uint64_t const amount = (*sleMpt)[sfOutstandingAmount];
+        return amount == expectedAmount;
+    }
+
     [[nodiscard]] bool
     checkMPTokenIssuanceFlags(
         test::jtx::Env const& env,
@@ -894,8 +908,9 @@ class MPToken_test : public beast::unit_test::suite
             Env env{*this, features};
             Account const alice("alice");  // issuer
             Account const bob("bob");      // holder
+            Account const carol("carol");  // holder
 
-            env.fund(XRP(10000), alice, bob);
+            env.fund(XRP(10000), alice, bob, carol);
             env.close();
 
             BEAST_EXPECT(env.ownerCount(alice) == 0);
@@ -909,18 +924,44 @@ class MPToken_test : public beast::unit_test::suite
 
             BEAST_EXPECT(env.ownerCount(alice) == 1);
             BEAST_EXPECT(env.ownerCount(bob) == 0);
+            BEAST_EXPECT(env.ownerCount(carol) == 0);
 
             // env(mpt::authorize(alice, id.key, std::nullopt));
             // env.close();
 
             env(mpt::authorize(bob, id, std::nullopt));
             env.close();
+            env(mpt::authorize(carol, id, std::nullopt));
+            env.close();
 
+            // issuer to holder
             env(pay(
                 alice, bob, ripple::test::jtx::MPT(alice.name(), mpt)(100)));
             env.close();
             BEAST_EXPECT(
                 checkMPTokenAmount(env, keylet::mptIssuance(id).key, bob, 100));
+            BEAST_EXPECT(checkMPTokenOutstandingAmount(
+                env, keylet::mptIssuance(id).key, 100));
+
+            // holder to issuer
+            env(pay(bob, alice, ripple::test::jtx::MPT(bob.name(), mpt)(100)));
+            env.close();
+            BEAST_EXPECT(
+                checkMPTokenAmount(env, keylet::mptIssuance(id).key, bob, 0));
+            BEAST_EXPECT(checkMPTokenOutstandingAmount(
+                env, keylet::mptIssuance(id).key, 0));
+
+            // holder to holder
+            env(pay(
+                alice, bob, ripple::test::jtx::MPT(alice.name(), mpt)(100)));
+            env(pay(bob, carol, ripple::test::jtx::MPT(alice.name(), mpt)(50)));
+            env.close();
+            BEAST_EXPECT(
+                checkMPTokenAmount(env, keylet::mptIssuance(id).key, bob, 50));
+            BEAST_EXPECT(checkMPTokenAmount(
+                env, keylet::mptIssuance(id).key, carol, 50));
+            BEAST_EXPECT(checkMPTokenOutstandingAmount(
+                env, keylet::mptIssuance(id).key, 100));
         }
     }