Exempt security not credited
Sec. 7. When any creditor has legal or equitable security upon
assets which are exempt from process for the satisfaction of
unsecured debts and are duly claimed as exempt by the insolvent
debtor, the value of such security shall not be credited upon the
claim. Amounts realized by the creditor from such security after
liquidation proceedings are begun shall be disregarded in computing
dividends, unless the dividend so computed exceeds the sum actually
owing upon the claim, in which event only the amount owing shall
be paid.
(Formerly: Acts 1941, c.50, s.7.)
Last modified: May 27, 2006