Division 7 — Secured creditors
Secured creditors
53.—(1)  If a secured creditor realises the secured creditor’s security, the secured creditor may prove for the balance due to the secured creditor after deducting the net amount realised.
(2)  If a secured creditor surrenders the secured creditor’s security to the trustee of the bankrupt’s estate in question for the general benefit of the creditors, the secured creditor may prove for the whole debt due to the secured creditor.
Amendment of valuation on satisfaction of trustee
54.—(1)  Without limiting rule 124 of the Personal Insolvency Rules, where a secured creditor has valued the secured creditor’s security, the secured creditor may at any time amend the valuation (called in this regulation the previous valuation) and proof on showing to the satisfaction of the trustee of the bankrupt’s estate in question that —
(a)the previous valuation and proof were made bona fide on a mistaken estimate; or
(b)the security has diminished or increased in value since the previous valuation.
(2)  Every amendment under paragraph (1) must be made at the cost of the secured creditor.
(3)  Where a valuation of a security has been amended in accordance with paragraph (1) and the amended valuation is higher than the previous valuation, the secured creditor must immediately repay any surplus dividend which the secured creditor has received in excess of that to which the secured creditor would have been entitled on the amended valuation.
(4)  Subject to paragraph (5), where a valuation of a security has been amended in accordance with paragraph (1) and the amended valuation is lower than the previous valuation, the secured creditor is entitled to be paid out of any moneys for the time being available for dividend any dividend or share of dividend which the secured creditor failed to receive by reason of the inaccuracy of the previous valuation, before those moneys are made applicable to the payment of any future distribution.
(5)  The secured creditor mentioned in paragraph (4) is not entitled to disturb the distribution of any dividend declared before the date of the amendment of the valuation under paragraph (1).
Realisation of security
55.  If a creditor, after having valued the creditor’s security, subsequently realises it, or if it is realised under section 349 of the Act, the net amount realised —
(a)must be substituted for the amount of any valuation previously made by the creditor; and
(b)must be treated in all respects as an amended valuation made by the creditor.
Maximum amount receivable by creditor
56.  Subject to section 349 of the Act, a creditor may not in any case receive more than 100 cents in the dollar and interest as provided by the Act.