Cap. 6:07
INSOLVENCY
No. 7/2018
(4) A secured creditor with(a)
security other than property contemplated in subsection (2), must as
soon as possible after liquidation place the liquidator in possession of
the security:
(b)
security contemplated in subsection (2) which has not been realised by the
creditor before the llrst meeting of creditors, must within five days after
the commencement of that meeting or within such longer period as the
liquidator may allow, place the liquidator in possession of the security;
(5) The liquidator must cause the security to be valued by an appraiser or some
other person approved by the Master, and the liquidator must supply the Master with
a copy of the valuation.
(6) A creditor who has placed the liquidator in possession of property held by
him or her as security does not thereby lose the security to which he or she is entitled
in respect of such property.
(7) Subject to subsection (8) and section 49(4), the liquidator must realise the
property made available to him or her pursuant to subsection (6) for the benefit of a
creditor whose claim is secured by such property.
(8) A liquidator may, if authorised thereto by the Master or by resolution at a
meeting of creditors of the estate, sell property constituting the security of a creditor
whose claim ranks first in preference and who has proved his or her claim against the
estate, to such creditor at a value agreed upon between the liquidator and the creditor.
(9) After proof of his or her claim and the realisation of the security, a secured
creditor is entitled to payment of his or her secured claim if he or she has furnished
security to the satisfaction of the liquidator for the repayment of the payment with
interest at the rate prescribed in terms of the Prescribed Rate of Interest Act [Chapter
8: 10], if according to the confirmed account the creditor is not entitled to the payment
or a part thereof.
( 10) A secured creditor may request the Court to grant permission to sell security
for the claim, subject to proper accounting to the liquidator for the sale, on grounds
that-
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(a)
the security is not necessary in respect of a prospecti\·e reorganisation or
sale of the debtor's business; and
(b)
the value of the security is diminishing as a result of the commencement
of insolvency proceedings; and
(c)
the secured creditor is not protected against that diminution of value.
Attachment of property upon failure to deliver to liquidator
( 1) If a creditor has failed to place the liquidator in possession of the pro pert)
constituting his or her security as contemplated in section 82(4), the liquidator shall
send to him or her demand by direct notice to place the liquidator in possession within
seven days after such demand.
(2) If the creditor fails to comply with the demand the liquidator may obtain
from the magistrate of the district where the property is situated a warrant directing
the sherifl to attach that property and to place the liquidator in possession thereof.
(3) The creditor in question is liable for all costs resulting from his or her
failure to place the liquidator in possession of the property, and if such costs cannot be
recovered from the said creditor they form part of the costs of realising the security in
terms of section 84(-J.).
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