## Commonwealth Consolidated Acts

[Index]
[Table]
[Search]
[Search this Act]
[Notes]
[Noteup]
[Previous]
[Next]
[Download]
[Help]

###
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.

**AustLII:** Copyright Policy
**|** Disclaimers
**|** Privacy Policy
**|** Feedback