§ 36. Exempt security not credited.
91 words·~1 min read·
/ny/debtor-creditor/secured-creditors/36·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 36. Exempt security not credited. 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.