Court documents indicated that a charge instrument was registered in favor of the secured creditor
over L.R NO.209/8611/2 as security for a loan Sh300 million.
If the parties properly create and attach a lien securing all or certain of the obligations, then the lender becomes a secured creditor
; in that event, in addition to the borrower's (and any guarantor's) promise to repay the debt, the lender may also enforce a contingent property interest in specified collateral in the event of default.
The FHLBanks could be satisfied with the security interest established by the advances agreement, and not be concerned at all with credit underwriting in only one case: if they had the perfect foresight that no other secured creditor
would have a valid perfected security interest in a member's assets in the event of a receivership.
These measures should help secured creditors
recover debts quickly and in a more cost effective manner, without necessitating a claim before the courts.
Furthermore, the claims made by the Association that the RM only pays the secured creditor
which appoints him, are incorrect, pursuant to s89 of Cap 113 of the Laws of Cyprus the RM must pay the preferential creditors of the company over which they are appointed, from the proceeds of any realisations of assets subject to the floating charge, before they pay the floating charge holder.
Privately-appointed receivers serve the secured creditor
that appointed them and will deal with assets covered by the loan agreement.
He also added that "although NBB is the sole secured creditor
, it expended all effort to ensure the implementation of this plan in order to complete the project, obtain repayment of its facilities, as well as enable other creditors to recover a significant part of their debts".
subrogation by which a secured creditor
may sometimes be entitled to
In other words, salaries have to be paid even before the secured creditors
' dues are settled.
In fact, they usually involve two appraisers and two appraisals: OflC for the property owner (which bankruptcy courts refer to as the debtor) and one for the lender holding the senior mortgage on the property (which bankruptcy courts refer to as the secured creditor
Under the plan of reorganisation, Arcapita will repay its only secured creditor
, Standard Chartered, in full.
A simple-sentence grant of a security interest, (1) combined with the filing of notice in an obscure set of public records, will give the secured creditor
's claim priority over employees' wage claims, (2) child support obligations, (3) tax claims, (4) civil damage judgments, (5) criminal fines and forfeitures, (6) claims for unjust enrichment, (7) and just about any other kind of debt imaginable.