Cap 6E - PROOF OF DEBTS RULES

2. L.N. 85 of 1998 came into operation on 1 April 1998.Rule: 8 30/06/1997A creditor proving his debt shall deduct therefrom all trade discounts, but he shall not be compelled to deductany discount, not exceeding 5 per cent on the net amount of his claim, which he may have agreed to allow for paymentin cash.Rule: 9 30/06/1997PROOF BY SECURED CREDITORSIf a secured creditor realizes his security, he may prove for the balance due to him, after deducting the netamount realized.Rule: 10 L.N. 129 of 2007;L.N. 185 of 200710/12/2007If a secured creditor surrenders his security to the trustee for the general benefit of the creditors, he may provefor his whole debt.(L.N. 129 of 2007)_____________________________________________________________________________Note:* This rule was amended by the Proof of Debts (Amendment) Rules 2007 (L.N. 129 of 2007). The transitionaland savings provisions contained in s. 3 of that Amendment Rules are reproduced as follows:"3. Transitional and savings provisions(1) Notwithstanding anything contained in these Rules, the amendments effected under theseRules shall not apply to any case in which the bankruptcy petition was presented before thecommencement date, and such case shall continue and be disposed of as if these Rules had not beenmade.(2) This section is in addition to and not in derogation of section 23 of the Interpretation andGeneral Clauses Ordinance (Cap 1).(3) For the purpose of this section, #“commencement date” ( 生 效 日 期 ) means the day appointedfor the commencement of the Bankruptcy (Amendment) Ordinance 2005 (18 of 2005) (except sections 1,12, 19 and 32 of that Ordinance).".# Commencement date: 10 December 2007.Rule: 11 30/06/1997If a secured creditor does not either realize or surrender his security, he shall, before ranking for dividend, statein his proof the particulars of his security, the date when it was given and the value at which he assesses it, and shallbe entitled to receive a dividend only in respect of the balance due to him after deducting the value so assessed.Rule: 12 30/06/1997(1) Where a security is so valued the trustee may at any time redeem it on payment to the creditor of theassessed value.(2) If the trustee is dissatisfied with the value at which a security is assessed, he may require that the propertycomprised in any security so valued be offered for sale at such times and on such terms and conditions as may beagreed on between the creditor and the trustee or as, in default of such agreement, the court may direct. If the sale beby public auction, the creditor, or the trustee on behalf of the estate, may bid or purchase.(3) Provided that the creditor may at any time by notice in writing require the trustee to elect whether he will orwill not exercise his power of redeeming the security or requiring it to be realized, and if the trustee does not within 6Cap 6E - PROOF OF DEBTS RULES 4