Section 349

If a secured creditor does not either realise or surrender the secured creditor’s security, the secured creditor must, before ranking for dividend, state in the secured creditor’s proof the particulars of the security, the date when it was given and the value at which the secured creditor assesses it, and the secured creditor is entitled to receive a dividend only in respect of the balance due to the secured creditor after deducting the value so assessed.

If the Official Assignee is dissatisfied with the value at which a security is assessed, the Official Assignee may require that the property comprised in any security so valued be offered for sale and on such terms and conditions as are agreed on between the creditor and the Official Assignee, and, in default of agreement, as the Court may direct.