True. In South Africa, a mortgage bond creates a secured interest in the immovable property, and the holder of the mortgage bond has a preferential claim over that particular property. However, in the context of the insolvent estate, the holder can be considered a concurrent creditor for any outstanding amounts that exceed the value of the secured property, as they can only claim against the estate for the amount owed after the secured asset has been accounted for. Therefore, they are both a secured creditor (to the extent of their security) and, for amounts that are not secured, a concurrent creditor.
the holder of mortgage bond over immovable property will be regarded as a concurrent creditor of the insolvent estate in south africa
true or false
1 answer