Part 2Security over Moveable Property
Chapter 1Pledge
Enforcement of pledge
I173Secured creditor’s right to appropriate
1
Where a pledge enforcement notice has been served, the secured creditor is entitled to appropriate any or all of the encumbered property in accordance with section 74 or (as the case may be) 75 in satisfaction, in whole or in part, of the secured obligation.
2
But it is not competent to appropriate by virtue of subsection (1)—
a
corporeal property, unless that property is in the possession of the secured creditor, or
b
property with a value which exceeds the total of—
i
the amount for the time being remaining due under the secured obligation, and
ii
such expenses as have reasonably been incurred by the secured creditor in enforcing the pledge,
unless a sum of money equivalent to the amount by which that total is exceeded is set aside by the secured creditor and held in trust until applied under section 77.