Co-operatives Act, 2005 (Act No. 14 of 2005)

Regulations

Co-operatives Administrative Regulations, 2016

Chapter 2 : Winding Up and Judicial Management of Co-operatives

Part A : Winding-Up of Co-operatives

Liquidation, trading, distribution and contribution accounts and application of proceeds

101. Application of proceeds of assets which served as security
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(1)The proceeds of any asset which served as security for a claim admitted or proved in terms of regulation 97 must, after deducting therefrom the liquidator's expenses with respect to such asset and such pro rata portion of the costs of liquidation as may be determined by the liquidator, in the first place be applied in paying such claim.

 

(2)If there is more than one such claim the relevant claims must be paid in the order of their preference.

 

(3)If the portion of the said proceeds which may be applied in paying any such claim or claims is less than the amount of such claim or claims the creditor or creditors concerned must be an ordinary creditor or ordinary creditors in respect of the unpaid portion of his claim or their claims.