Commonwealth Consolidated Acts

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Proof of debt by secured creditor

             (1)  In the winding up of an insolvent company, a secured creditor is not entitled to prove the whole or a part of the secured debt otherwise than in accordance with this section and with any other provisions of this Act or the regulations that are applicable to proving the debt.

             (2)  The creditor's proof of debt must be in writing.

             (3)  If the creditor surrenders the security interest to the liquidator for the benefit of creditors generally, the creditor may prove for the whole of the amount of the secured debt.

             (4)  If the creditor realises the security interest, the creditor may prove for any balance due after deducting the net amount realised, unless the liquidator is not satisfied that the realisation has been effected in good faith and in a proper manner.

             (5)  If the creditor has not realised or surrendered the security interest, the creditor may:

                     (a)  estimate its value; and

                     (b)  prove for the balance due after deducting the value so estimated.

             (6)  If subsection (5) applies, the proof of debt must include particulars of the security interest and the creditor's estimate of its value.

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