Document ID: chunk:federal_register_of_legislation:C2013C00609:clause:2_77
Version: federal_register_of_legislation:C2013C00609
Segment Type: clause
Provision Reference: sch 2 cl 77
Character Range: 118430–119051

77  At the end of section 136
Add:

Extinguishment of obligation owed to the secured party
 (5) If a secured party (the retaining secured party) takes collateral under this section free of the interests referred to in subsection (2):
 (a) the debt or other obligation secured by the security interest held by the retaining secured party is extinguished; but
 (b) paragraph (2)(c) does not have the effect that a debt or other obligation secured by another security interest in the collateral is extinguished, if the other security interest has a lower priority than the security interest of the retaining secured party.