All sections · Part XVII: Striking Off, Winding Up And Dissolution · Sub-Part V: Provisions of General Application in Winding Up
331 Secured creditors
(1) A secured creditor has a security interest in secured assets.
(2) Subject to subsections (3) and (4), where a company is being wound up
or becomes insolvent, the amount due to a secured creditor is payable
from the secured assets or the proceeds of sale thereof, in priority to all
other claims.
(3) Priority among secured creditors with security over the same secured
assets shall be determined in accordance with sections 184, 185 and 186.
(4) Once the secured assets, over which a secured creditor has a security
interest, has been exhausted but the liabilities owed by the company to
the secured creditor have not been paid and discharged in full, the secured
creditor becomes an unsecured creditor and ranks paripassu with other
unsecured creditors.
(5) In the winding up of a company, any privilege under articles 2101 of the
Civil Code of Seychelles Act shall be deemed to be void, and a creditor
claiming such rights shall be deemed to be an unsecured creditor.
(2) Subject to subsections (3) and (4), where a company is being wound up
or becomes insolvent, the amount due to a secured creditor is payable
from the secured assets or the proceeds of sale thereof, in priority to all
other claims.
(3) Priority among secured creditors with security over the same secured
assets shall be determined in accordance with sections 184, 185 and 186.
(4) Once the secured assets, over which a secured creditor has a security
interest, has been exhausted but the liabilities owed by the company to
the secured creditor have not been paid and discharged in full, the secured
creditor becomes an unsecured creditor and ranks paripassu with other
unsecured creditors.
(5) In the winding up of a company, any privilege under articles 2101 of the
Civil Code of Seychelles Act shall be deemed to be void, and a creditor
claiming such rights shall be deemed to be an unsecured creditor.
