Hello all  :-D

I came upon an awkward scenario in my last game:

I played UK and I had taken france and had an IC on it.  I however lost UK from the germans on thier turn… so at this point I surrendered my $$$ to Germany… also I can no longer produce any units according to the rules.  Now on my following turn I could not get my units back to UK so I pushed forward and successfully took Germany.  Now to my understanding he had to surrender all the $$$ he had back to me and could no longer produce units…  So at this point I had $$$ but I was not allowed to produce units even though I had his capital or even an IC in France correct?

Thanks for any responses!