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PART 5CLAIMS BY AND DISTRIBUTIONS TO CREDITORS

CHAPTER 2Creditors’ claims in housing administration

Secured creditor: redemption by housing administrator

5.17.—(1) The housing administrator may at any time deliver a notice to a creditor whose debt is secured that the housing administrator proposes, at the expiration of 28 days from the date of the notice, to redeem the security at the value put upon it in the creditor’s proof.

(2) The creditor then has 21 days (or such longer period as the housing administrator may allow) in which to alter the value of the security in accordance with rule 5.15.

(3) If the creditor alters the value of the security with the agreement of the housing administrator or the court then the housing administrator may only redeem at the new value.

(4) If the housing administrator redeems the security the cost of transferring it is payable as an expense out of the estate.

(5) A creditor whose debt is secured may at any time deliver a notice to the housing administrator requiring the housing administrator to elect whether or not to redeem the security at the value then placed on it.

(6) The housing administrator then has three months in which to redeem the security or elect not to redeem the security.