§ 30-2-7-7 — Exempt security not credited

When any creditor has legal or equitable
security upon assets which are exempt from process for the satisfaction
of unsecured debts and are duly claimed as exempt by the insolvent
debtor, the value of such security shall not be credited upon the claim.
Amounts realized by the creditor from such security after liquidation
proceedings are begun shall be disregarded in computing dividends,
unless the dividend so computed exceeds the sum actually owing upon
the claim, in which event only the amount owing shall be paid.
Formerly: Acts 1941, c.50, s.7.