520. Proof by secured creditors.

If a secured creditor1 realises the security, the creditor may prove for the balance of the creditor's debt, after deducting the amount realised2. A creditor who voluntarily surrenders a security may prove for the whole of the creditor's debt as if it were unsecured3.

If a secured creditor fails to disclose a security in a proof of debt, the secured creditor must surrender that security for the general benefit of creditors, unless the court, on application by the secured creditor, relieves the secured creditor from the effect of this provision on the grounds that the omission was inadvertent or the