No. 7/2018 84 INSOLVENCY Cap.6:07 Application of proceeds of security (I) A secured creditor is entitled to share in the distribution of the proceeds of his or her security only if he or she has proved a claim against the insolvent estate. (2) Any interest due in respect of a secured claim in respect of any period not longer than two years before the date of liquidation is secured as if it were part of the capital debt. (3) If the claim of a secured creditor exceeds the sum payable to him or her in respect of his or her security, he or she is entitled to rank against the estate in respect of the excess as a concurrent creditor, unless when proving his or her claim he or she had indicated that he or she relies solely on his or her security for the fulfilment of his or her claim. (-+)The costs of maintaining, conserving and realising any security must be paid out of the proceeds of that security if sufficient and, if insufficient, the costs must be paid by the secured creditor. (5) The costs of realisation of any security include(a) the liquidator's remuneration in respect of that security and a proportionate share of any excess of minimum liquidator's remuneration m·er the ordinary tariff; and (b) a proportionate share of the costs incurred by the liquidator in gi \·ing security for his or her proper administration of the estate; and (c) a proportionate share of the Master's fees, calculated on the proceeds of the security; and (d) if the property is immovable, any assessment rates as defined in subsection (7) which are or will become due thereon in respect of any period not exceeding two years immediately preceding the date of the liquidation and in respect of the period from that date to the date of the transfer of that property by the liquidator of that estate, with any interest or penalt) which may be due on the said assessment rates in respect of any such period. (6) Not\\'ithstanding any lmv which prohibits the transfer of immovable property unless assessment rates as defined in subsection (7) due thereon or other amounts ha\ e been paid, that law shall not debar the liquidator of an insolvent estate from transferring any immovable property in that estate for the purpose of liquidating the estate, if the liquidator has paid or offered reasonable security for payment of the assessment rates which are due in respect of the periods mentioned in subsection (5) and no preference, either as costs of liquidation or otherwise, may be accorded to any other claim for such assessment rates or such other amounts. (7) For the purposes of subsections (5) and (6) "assessment rates" in relation to immovable property means any amount payable periodically in respect of that property to an organ of State if that liability is an incident of the ownership of that property, but does not include any amount payable for services rendered in respect of such property. (8) After payment of the costs referred to in subsection (.:.J.), the balance of the proceeds of the security must be applied in satisfying, in order of preference of secured creditors, first the capital sums of claims secured by the said security, and thereafter simple interest on the capital sums at the rate prescribed in terms of the Prescribed Rate of Interest Act [Chapter 8:10], or a higher rate of interest by virtue of a lawful stipulation in writing, from date of liquidation to the date of payment. (9) Any balance of the proceeds of the securit; remaining must be added to the free residue of the insolvent estate. 260