Section 52 - Secured creditor in liquidation proceedings.

Realisation of security interest allows secured creditors to enforce assets after verification and account for any surplus.

A secured creditor may either relinquish its security to the liquidation estate for distribution or realise its security interest after notifying the liquidator and identifying the asset. The liquidator must verify the security interest by information utility records or Board-prescribed means before realisation. Enforcement and disposal follow applicable law; proceeds are applied to the secured debt, with any surplus tendered to the liquidator and any shortfall treated as an unsecured claim payable by the liquidator. Costs of the insolvency process recoverable from such realisations are deductible and transferred to the liquidation estate.