Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p74
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 74/110)
Character Range: 339676–342344

to be registered.

Amendment of valuation

"554G.(1) If 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, the creditor may, at any time, apply to the liquidator or the Court for permission to amend the proof of debt by altering the estimated value.

  "(2) If the liquidator or the Court is satisfied:

    (a)     that the estimate of the value of the security was made in good faith on a mistaken basis; or

    (b)     that the value of the security has changed since the estimate was made;

the liquidator or the Court may permit the creditor to amend the proof of debt accordingly.

"(3) If the Court permits the creditor to amend the proof of debt, it may do so on such terms as it thinks just and equitable.

Repayment of excess

"554H.(1) Where a creditor who has amended a proof of debt under section 554G has received, in the winding up of the debtor company, an amount in excess of the amount to which the creditor would have been entitled under the amended proof of debt, the creditor must, without delay, repay the amount of the excess to the liquidator.

"(2) Where a creditor who has so amended a proof of debt has received, in the winding up of the debtor company, less than the amount to which the creditor would have been entitled under the amended proof of debt, the creditor is entitled to be paid, out of the money remaining for distribution in the winding up, the amount of the deficiency before any of that money is applied in the payment of future distributions, but the creditor is not entitled to affect a distribution made before the amendment of the proof of debt.

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.

"Subdivision D—Priorities".

Debts and claims proved to rank equally except as otherwise provided

95. Section 555 of the Corporations Law is amended by inserting "and claims" after "debts".

Priority payments

  96. Section 556 of the Corporations Law is amended:

    (a) by omitting subsection (1) and substituting the following subsections:

     "(1) Subject to this Division, in the winding up of a company the following debts and claims must be paid