IC 30-2-7
    Chapter 7. Uniform Act Governing Secured Creditors' Dividendsin Liquidation Proceedings

IC 30-2-7-1
Definitions
    Sec. 1. As used in this chapter, unless the context orsubject-matter requires otherwise:
    (a) "Liquidation proceeding" includes all assignments for thebenefit of creditors, whether voluntary or by operation of law;administration of insolvent decedents' estates; liquidations ofinsolvent banks; equity receiverships where the subject underreceivership is insolvent; and any other proceedings for distributionof assets of any insolvent debtor, whether a person, decedent's estate,partnership, limited liability company, corporation, or businessassociation.
    (b) "Liquidator" means any person administering assets in anyliquidation proceeding as defined in this chapter.
    (c) "Insolvent debtor" means any insolvent person, decedent'sestate, partnership, limited liability company, corporation, orbusiness association involved in a liquidation proceeding as definedin this chapter.
    (d) "Secured creditor" means a creditor who has either legal orequitable security for his debt upon any property of the insolventdebtor of a nature to be liquidated and distributed in a liquidationproceeding, or a creditor to whom is owed a debt for which suchsecurity is possessed by some indorser, surety, or other personsecondarily liable.
    (e) "Creditor's sale" includes any sale effected by the securedcreditor by judicial process or otherwise under the terms of hiscontract or the applicable law for the purpose of realizing upon hissecurity.
(Formerly: Acts 1941, c.50, s.1.) As amended by Acts 1982, P.L.171,SEC.106; P.L.8-1993, SEC.464.

IC 30-2-7-2
Secured creditors' claim must disclose security
    Sec. 2. In a liquidation proceeding every secured creditor's claimagainst the general assets shall disclose the nature of the security.When a decedent's estate already in the course of administration isjudicially declared insolvent or when in an equity receivership it isdetermined that the subject under receivership is insolvent, securedcreditors having claims on file which do not comply with this sectionshall make disclosure within a time to be fixed by the court.
(Formerly: Acts 1941, c.50, s.2.)

IC 30-2-7-3
Effect of concealment
    Sec. 3. Any secured creditor who with intent to evade theprovisions of this chapter fails to disclose the existence of the

security shall not be entitled to receive or retain dividends out of thegeneral assets, unless he thereafter releases or surrenders to theliquidator the security which he has failed to disclose, or unless heprocures such release or surrender if the security is in the possessionof an indorser, surety, or other person secondarily liable for theinsolvent debtor.
(Formerly: Acts 1941, c.50, s.3.) As amended by Acts 1982, P.L.171,SEC.107.

IC 30-2-7-4
Value of security credited upon claims
    Sec. 4. Dividends paid to secured creditors shall be computed onlyupon the balance due after the value of all security not exempt fromthe claims of unsecured creditors and not released or surrendered tothe liquidator, is determined and credited upon the claim secured byit.
(Formerly: Acts 1941, c.50, s.4.)

IC 30-2-7-5
Determination of value by secured creditor
    Sec. 5. (1) By collection. When the asset constituting the securityis an obligation for the payment of money, the secured creditor maydetermine its value by collection or by exhausting his remediesthereon and then surrendering the obligation to the liquidator.
    (2) By creditor's sale. When the asset constituting the security issomething other than an obligation for the payment of money, thesecured creditor may determine its value by creditor's sale.
(Formerly: Acts 1941, c.50, s.5.)

IC 30-2-7-6
Alternative determination of value
    Sec. 6. Where valuation under the provisions of section 5 of thischapter is impracticable or would cause undue delay, the court, uponpetition by either the secured creditor or the liquidator, may order thevalue of the security determined by any of the following methods:
        (1) By compromise, if the secured creditor and the liquidatoragree upon a value. The liquidator may redeem such assets bypayment of the agreed value, if authorized by the court.
        (2) By litigation, through proceedings in the liquidationproceedings. The liquidator may redeem such assets by payingthe value so determined, if authorized by the court.
        (3) By liquidator's sale of the assets which, when completed andapproved by the court, shall pass to the purchaser good title,free and clear of all liens of the secured creditor, such liens tobe transferred to the proceeds of the sale. The order of sale maybe either:
        (a) conditional, requiring the sale to be made by the liquidatoronly if the secured creditor does not complete a determinationby collection or creditor's sale as set forth in section 5 of thischapter within a time fixed by the court; or        (b) absolute, requiring the sale to be made by the liquidatorwithin a time fixed by the court.
Provided, that subdivision (3) shall not apply to security upon realestate or insolvent decedents' estates administered by the court.
(Formerly: Acts 1941, c.50, s.6.) As amended by Acts 1982, P.L.171,SEC.108.

IC 30-2-7-7
Exempt security not credited
    Sec. 7. When any creditor has legal or equitable security uponassets which are exempt from process for the satisfaction ofunsecured debts and are duly claimed as exempt by the insolventdebtor, the value of such security shall not be credited upon theclaim. Amounts realized by the creditor from such security afterliquidation proceedings are begun shall be disregarded in computingdividends, unless the dividend so computed exceeds the sum actuallyowing upon the claim, in which event only the amount owing shallbe paid.
(Formerly: Acts 1941, c.50, s.7.)

IC 30-2-7-8
Uniformity of interpretation
    Sec. 8. This chapter shall be so interpreted and construed as toeffectuate its general purpose to make uniform the law of those stateswhich enact it.
(Formerly: Acts 1941, c.50, s.9.) As amended by Acts 1982, P.L.171,SEC.109.

IC 30-2-7-9
Short title
    Sec. 9. This chapter may be cited as Uniform Act GoverningSecured Creditors' Dividends in Liquidation Proceedings.
(Formerly: Acts 1941, c.50, s.10.) As amended by Acts 1982,P.L.171, SEC.110.