Singapore legislation
Regulation 57
of Insolvency, Restructuring and Dissolution (Bankruptcy) Regulations 2020
Regulation 57
Application of proceeds of sale of mortgaged property
Subregulation 1
The moneys arising from a sale of immovable property directed by the Court upon an application by a mortgagee of the property under the Personal Insolvency Rules must be applied in the following order of priority, and any surplus must be paid to the trustee of the bankrupt’s estate in question:
firstly in payment of the costs, charges and expenses of the trustee arising from the application to the Court under those Rules and the conduct of the sale;
secondly in payment and satisfaction, so far as will extend, of what is found due to the mortgagee of the property for principal, interest and costs.
Subregulation 2
Where the moneys arising from the sale of the property are insufficient to pay and satisfy what is found due to the mortgagee of the property, the mortgagee is entitled to prove as a creditor for the deficiency and receive dividends on the deficiency rateably with the other creditors, but not so as to disturb any dividend then already declared.