§ 27-14.3-45 - Secured creditor's claims. - Rhode Island Statutes

SECTION 27-14.3-45

   § 27-14.3-45  Secured creditor's claims.– (a) The value of any security held by a secured creditor shall be determined inone of the following ways, as the court may direct:

   (1) By converting the security into money according to theterms of the agreement pursuant to which the security was delivered to thecreditors; or

   (2) By agreement, arbitration, compromise, or litigationbetween the creditor and the liquidator.

   (b) The determination shall be under the supervision andcontrol of the court with due regard for the recommendation of the liquidator.The determined amount shall be credited upon the secured claim, and anydeficiency shall be treated as an unsecured claim. If the claimant shallsurrender his or her security to the liquidator, the entire claim shall beallowed as if unsecured.