CAP. 6]
Bankruptcy.
Proof by secured creditors.
9. If a secured creditor realizes his security he may prove for the balance due to him, after deducting the net amount realized.
10. If a secured creditor surrenders his security to the Official Receiver or trustee for the general benefit of the creditors, he may prove for his whole debt.
11. If a secured creditor does not either realize or surrender his security he shall, before ranking for dividend, state in his proof the particulars of his security, the date when it was given and the value at which he assesses it, and shall be entitled to receive a dividend only in respect of the balance due to him after deducting the value so assessed.
12. (1) Where a security is so valued the trustee may at any time redeem it on payment to the creditor of the assessed value.
(2) If the trustee is dissatisfied with the value at which a security is assessed he may require that the property comprised in any security so valued be offered for sale at such times and on such terms and conditions as may be agreed on between the creditor and the trustee or as, in default of such agreement, the court may direct. If the sale be by public auction the creditor, or the trustee on behalf of the estate, may bid or purchase.
(3) Provided that the creditor may at any time by notice in writing require the trustee to elect whether he will or will not exercise his power of redeeming the security or requiring it to be realized, and if the trustee does not within six months after receiving the notice signify in writing to the creditor his election to exercise the power, he shall not be entitled to exercise it; and the equity of redemption, or any other interest in the property comprised in the security which is vested in the trustee, shall vest in the creditor and the amount of his debt shall be reduced by the amount at which the security has been valued.
13. Where a creditor has so valued his security he may at any time amend the valuation and proof on showing to the satisfaction of the trustee or the court that the valuation was made bona fide on a mistaken estimate, or that the security has diminished or increased in value since its valuation.
Page 358
CAP. 6]
Bankruptcy.
Proof by secured creditors.
9. If a secured creditor realizes his security he may prove for the balance due to him, after deducting the net amount realized.
10. If a secured creditor surrenders his security to the Official Receiver or trustee for the general benefit of the creditors, he may prove for his whole debt.
11. If a secured creditor does not either realize or sur- render his security he shall, before ranking for dividend, state in his proof the particulars of his security, the date when it was given and the value at which he assesses it, and shall be entitled to receive a dividend only in respect of the balance due to him after deducting the value so assessed..
12. (1)
:
Where a security is so valued the trustee may at any time redeem it on payment to the creditor of the assessed value.
(2) If the trustee is dissatisfied with the value at which a security is assessed he may require that the property comprised in any security so valued be offered for sale at such times and on such terms and conditions as may be agreed on between the creditor and the trustee or as, in default of such agreement, the court may direct. If the sale be by public auction the creditor, or the trustee on behalf of the estate, may bid or purchase:
(3) Provided that the creditor may at any time by notice in writing require the trustee to elect whether he will or will not exercise his power of redeeming the security or requiring it to be realized, and if the trustee does not within six months after receiving the notice signify in writing to the creditor his election to exercise the power, he shall not be entitled to exercise it; and the equity of redemption, or any other interest in the property comprised in the security which is vested in the trustee, shall vest in the creditor and the amount of his debt shall be reduced by the amount at which the security has been valued.
13. Where a creditor has so valued his security he may at any time amend the valuation and proof on showing to the satisfaction of the trustee or the court that the valua-
358 -
No comments yet.
Private notes are available after approval.