Rule 14.17 Secured creditor: redemption by office-holderC1

F1(A1)

This rule does not apply where a proof is submitted for the purpose of a decision procedure in respect of a moratorium under Part A1 of the Act.

(1)

The office-holder may at any time deliver a notice to a creditor whose debt is secured that the office-holder proposes, at the expiration of 28 days from the date of the notice, to redeem the security at the value put upon it in the creditor's proof.

(2)

The creditor then has 21 days (or such longer period as the office-holder may allow) in which to alter the value of the security in accordance with rule 14.15.

(3)

If the creditor alters the value of the security with the permission of the office-holder or the court then the office-holder may only redeem at the new value.

(4)

If the office-holder redeems the security the cost of transferring it is payable as an expense out of the insolvent estate.

(5)

A creditor whose debt is secured may at any time deliver a notice to the office-holder requiring the office-holder to elect whether or not to redeem the security at the value then placed on it.

(6)

The office-holder then has three months in which to redeem the security or elect not to redeem the security.