§560:3-809  Secured claims. 
Payment of a secured claim is upon the basis of the amount allowed if the
creditor surrenders the creditor's security; otherwise payment is upon the
basis of one of the following:



(1)  If the creditor exhausts the creditor's security
before receiving payment, unless precluded by other law upon the amount of the
claim allowed less the fair value of the security; or



(2)  If the creditor does not have the right to
exhaust the security or has not done so, upon the amount of the claim allowed
less the value of the security determined by converting it into money according
to the terms of the agreement pursuant to which the security was delivered to
the creditor, or by the creditor and personal representative by agreement,
arbitration, compromise or litigation. [L 1996, c 288, pt of §1]