Insolvency Act

242. Secured creditor can prove as unsecured creditor if security is void or partly void

Edition: 2022-12-31 · In force

242. Secured creditor can prove as unsecured creditor if security is void or partly void

If a creditor's security over assets of the bankrupt is wholly or partly void under a provision of this or any other Act, the creditor may prove as an unsecured creditor—

(a)if the security is wholly void, for the whole of the debt; or

(b)if the security is partly void, to the extent that the debt is unsecured.

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Source: Kenya Law