396.105 Payment of secured claim.
131 words·~1 min read·
/ky/chapter-396/396-105A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Payment of a secured claim shall be upon the basis of the amount allowed if the creditor surrenders his security; otherwise payment shall be upon the basis of one
(1)of the following:
(1)If the creditor exhausts his security before receiving payment, unless precluded by
other law, upon the amount of the claim allowed less than the fair value of the
security; or
(2)If the creditor does not have the right to exhaust his security or has not done so,
upon the amount of the claim allowed less the value of the security determined by
converting it into money according to the terms of the agreement pursuant to which
the security was delivered to the creditor, or by the creditor and personal
representative by agreement, arbitration, compromise or litigation.