## Commonwealth Consolidated Acts

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CORPORATIONS ACT 2001 - SECT 554E

**Proof of debt by secured creditor**
(1) 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 Act or
the regulations that are applicable to proving the debt.

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

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

(4) If the creditor realises the security interest, 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.

(5) If the creditor has not realised or surrendered the
security interest, the creditor may:

(a) estimate its value; and

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

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

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