Section 74: Mortgage creditors
consolidated text (as at 2000). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
74. Mortgage creditors
(1) Where a distribution of the price of immovable property is made previous to the declaration of any dividends, the inscribed creditors whose
claims are not collocated in full on such price shall, for whatever remains due
to them, rank with the unsecured creditors pari passu on any dividend declared by the trustee if their claims have been proved.
(2) (a) Where one or more dividends are declared before the distribution
of the price of the immovable property, the inscribed creditors shall be entitled to participate in such dividend or dividends and any sum allotted to them
in any such dividend shall revert, in part or in full, to the bankrupt, in case
their claim or any part thereof is subsequently collocated on the sale price of
the immovables.
(b) Where part only of their claim is collocated, their share in the
dividend shall be reduced in proportion to the sums for which they remain
creditors after deduction of their collocations.