Section Sch7-“ 116A — Property Law Act 2007: Secured party selling collateral must pay prior ranking secured parties

“ 116A Secured party selling collateral must pay prior ranking secured parties “ (1) A secured party who has sold collateral under section 109 must, before applying the net proceeds of the sale towards the satisfaction of the debt or other obligation secured by the security interest of the secured party, apply the net proceeds of the sale towards satisfying the claims of any person who has registered a financing statement in the name of the debtor over the collateral that is sold if— “ (a) the registration was effective immediately before the collateral was sold; and “ (b) the security interest relating to that registration had priority over the security interest of the secured party who sold the collateral. “ (2) The security interests to which subsection (1) applies must be paid in the order of their priority as determined by Part 7 or by Part 8. “ (3) The persons who must be paid under subsection (1) are entitled to recover the amount that must be paid from the secured party. “ (4) In this section, net proceeds has the same meaning as in section 104(2). “ (5) This section is subject to sections 153 and 154 of the Property Law Act 2007. ”