ADVOKS GLOBAL · KENYA
Movable Property Security Rights Act
74. Right of the secured creditor to distribute the proceeds of a disposition of a collateral
Edition: 2022-12-31 · In force
74. Right of the secured creditor to distribute the proceeds of a disposition of a collateral
(1)A secured creditor shall apply or pay over for application the proceeds of disposition under section 72 in the following order—(a)the reasonable expense of repossessing, holding, preparing for disposition, processing, and disposing of the collateral;(b)the satisfaction of obligations secured by the security right under which the disposition is made; and(c)the satisfaction of obligations secured by any subordinate security right or other subordinate lien or right in the collateral if the secured creditor receives from the holder of the subordinate security right, lien or other right a demand for proceeds before distribution of the proceeds is completed.(2)If requested by the secured creditor, a holder of a subordinate security right, lien or other right shall furnish reasonable proof of the right or lien within a reasonable time if the secured creditor is to comply with the holder's demand under subsection (1)(c).(3)Whether or not there is any dispute as to the entitlement or priority of any competing claimant, the enforcing secured creditor may pay the surplus to a court for distribution in accordance with the provisions of this Act on priority.(4)A debtor remains liable for any shortfall owing after application of the net proceeds under this section.