2,734
edits
Difference between revisions of "Creditors' Remedies against Debtors (10:III)"
Jump to navigation
Jump to search
Creditors' Remedies against Debtors (10:III) (view source)
Revision as of 21:53, 2 October 2022
, 21:53, 2 October 2022→10. Voluntary Foreclosure
| Line 116: | Line 116: | ||
After default, a secured party may make a proposal to the debtor and other interested parties to take the collateral to satisfy obligations secured by it (s 61). | After default, a secured party may make a proposal to the debtor and other interested parties to take the collateral to satisfy obligations secured by it (s 61). | ||
The debtor and other interested parties have 15 days to object to the secured party’s proposal. Failure to object is deemed to be an irrevocable election to forfeit all rights and interests in the good and entitles the secured party to retain the good. | |||
If the debtor or other secured party provides notice of objection to the secured party within 15 days after the notice is given, the secured party must dispose of the collateral in accordance with the provisions of s 59 (s 61(2)). In such circumstances, under s 61(7), the secured party may make an application to the court for an order that an objection to the secured party’s proposal is ineffective because: | If the debtor or other secured party provides notice of objection to the secured party within 15 days after the notice is given, the secured party must dispose of the collateral in accordance with the provisions of s 59 (s 61(2)). In such circumstances, under s 61(7), the secured party may make an application to the court for an order that an objection to the secured party’s proposal is ineffective because: | ||
:i) the objection was made for a purpose other than protecting an interest in the collateral or the proceeds of the disposition of the collateral; or | |||
:ii) the market value of the collateral is less than the total amount owing to the secured party plus the costs of disposition. | |||
=== 11. Restrictions on Realization === | === 11. Restrictions on Realization === | ||