Regulation 79

The liquidator may, within 28 days after a proof of debt estimating the value of a secured creditor’s security has been used to vote at a meeting of creditors, require the secured creditor to give up the security for the benefit of the creditors of the VCC or sub‑fund generally on payment to the secured creditor of —

A secured creditor may, after having used a proof of debt that estimated the value of the security held by the creditor to vote in a meeting of the creditors, at any time before being required by the liquidator to give up the security, file a new proof of debt with a different valuation of the security (called the new value) and deduct the new value from the secured creditor’s debt.

However, the liquidator does not need to make payment of the additional 20% of the new value if the liquidator subsequently requires the secured creditor to give up the security for the benefit of the creditors of the VCC or sub‑fund generally.