(a) The value of any security held by a secured creditor shall be determined in one (1) of the following ways, as the court may direct:

Terms Used In Tennessee Code 56-9-329

  • Creditor: is a person having any claim, whether matured or unmatured, liquidated or unliquidated, secured or unsecured, absolute, fixed or contingent. See Tennessee Code 56-9-103
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Secured claim: means any claim secured by mortgage, trust deed, pledge, deposit as security, escrow, or otherwise, but not including special deposit claims or claims against general assets. See Tennessee Code 56-9-103
(1) By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to the creditors; or
(2) By agreement, arbitration, compromise or litigation between the creditor and the liquidator.
(b) The determination shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured claim. If the claimant surrenders the claimant’s security to the liquidator, the entire claim shall be allowed as if unsecured.
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