72-3-811. Secured claims. Payment of a secured claim is upon the basis of the amount allowed if the creditor surrenders the creditor’s security. Otherwise, payment is upon the basis of one of the following:

Ask a will, trust or estate question, get an answer ASAP!
Thousands of highly rated, verified estate & trust lawyers.
Click here to chat with a lawyer about your rights.

(1)if the creditor exhausts the creditor’s security before receiving payment, unless precluded by other law, upon the amount of the claim allowed less the fair value of the security; or

(2)if the creditor does not have the right to exhaust the creditor’s security or has not done so, upon the amount of the claim allowed less the value of the security determined by converting it into money according to the terms of the agreement pursuant to which the security was delivered to the creditor or by the creditor and personal representative by agreement, arbitration, compromise, or litigation.