THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.6 - WINDING UP GENERALLY

Division 6 - Proof and ranking of claims

Subdivision C - Special provisions relating to secured creditors of insolvent companies

SECTION 554E   PROOF OF DEBT BY SECURED CREDITOR  

554E(1)  [Proof only in accordance with section]  

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 Law or the regulations that are applicable to proving the debt.

554E(2)  [Proof in writing]  

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

554E(3)  [Where security surrendered to liquidator]  

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

554E(4)  [Where security realised]  

If the creditor realises the security, 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.

554E(5)  [Where security neither realised nor surrendered]  

If the creditor has not realised or surrendered the security, the creditor may:

(a)  estimate its value; and

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

554E(6)  [Proof to include particulars and estimate]  

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