40-3640. Same; value of security held by secured creditor. - Kansas Statutes

40-3640

Chapter 40.--INSURANCE Article 36.--IMPAIRED OR INSOLVENT INSURERS

      40-3640.   Same; value of security held by secured creditor.(a) The value of any security held by a secured creditor shallbedetermined in one of the following ways, as the court may direct:

      (1)   By converting the same into money according to the terms of theagreement pursuant to which the security was delivered to such creditors; or

      (2)   by agreement, arbitration, compromise or litigation between the creditorand the liquidator.

      (b)   The determination shall be under the supervision and control of thecourt with due regard for the recommendation of the liquidator. The amount sodetermined shall be credited upon the secured claim, and any deficiency shallbetreated as an unsecured claim. If the claimant surrenders the security tothe liquidator, the entire claim shall be allowed as if unsecured.

      History:   L. 1991, ch. 125, § 36; July 1.