Rule 124 Secured debtsI1

In calculating the amount of a secured creditor’s claim the secured creditor is to deduct the value of any security as estimated by the secured creditor.

If the secured creditor surrenders, or undertakes in writing to surrender, a security for the benefit of the institution’s assets, the secured creditor is not required to deduct the value of that security.

The administrator may, at any time after the expiry of twelve weeks from the date on which the institution entered special administration, require a secured creditor at the expense of the institution’s assets to discharge the security or convey or assign it to the administrator on payment to the creditor of the value specified by the creditor.

Where under paragraph (3) the administrator makes payment to the creditor, the amount in respect of which the creditor is then entitled to claim is to be any balance of the creditor’s debt remaining after receipt of such payment.

In calculating the amount of the claim of a creditor whose security has been realised, the creditor must deduct the amount (less the expenses of realisation) which the creditor has received, or is entitled to receive, from the realisation.