THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.6 - WINDING UP GENERALLY

Division 6 - Proof and ranking of claims

Subdivision C - Special provisions relating to secured creditors of insolvent companies

SECTION 554J   SUBSEQUENT REALISATION OF SECURITY  

554J    Where:

(a)  a secured creditor's proof of debt is in respect of the balance due after deducting the creditor's estimate of the value of the security; and

(b)  subsequently:

(i) the creditor realises the security; or

(ii) the security is realised under section 554F;

the net amount realised is to be substituted for the estimated value of the security and section 554H applies as if the proof of debt had been amended accordingly under section 554G.