(1) A claim on a debt due for which the creditor holds security may be presented as a claim on an unsecured debt due, or the creditor may elect to rely entirely on the security without presentation of the claim.
(2) If the claim is presented, it shall describe the security. If the security is an encumbrance that is recorded, it is sufficient to describe the encumbrance by reference to the book, page, date and place of recording.
(3) If the claim is presented and allowed, allowance shall be in the amount of the debt remaining unpaid on the date of allowance.
(4) If the creditor surrenders the security, payment shall be on the basis of the amount allowed.
(5) If the creditor does not surrender the security, payment shall be on the basis of:
(a) If the creditor exhausts the security before receiving payment, unless precluded by other law, the amount allowed, less the amount realized on exhausting the security; or
(b) If the creditor does not exhaust the security before receiving payment or does not have the right to exhaust the security, the amount allowed, less the value of the security determined by agreement or as the court may order.
(6) The personal representative may convey the secured property to the creditor in consideration of the satisfaction or partial satisfaction of the claim. [1969 c.591 §146; 1989 c.229 §5]
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