(1) Where a secured creditor exercises the right under section 93 by making an application to the court, the distribution of the proceeds of sale or other disposition of, lease or licence of an encumbered property is determined by the Civil Code, of the Revised Laws of Saint Lucia, 1957 and the Eastern Caribbean Supreme Court Civil Procedure Rules, 2000 and in accordance with this Act on priority.
(2) Where a secured creditor exercises the right under section 94 without making an application to the court, the secured creditor that is enforcing a security interest —
(a) shall apply the proceeds of enforcement to the secured obligation after deducting the reasonable cost of enforcement, such as repossessing, holding, preparing for disposition, processing, and disposing of the encumbered property;
(b) whether or not there is a dispute as to the entitlement or priority of a competing claimant under this Act, may pay the surplus to an authorized person or deliver it to a judicial sequestrator pursuant to Article 1723 of the Civil Code, for distribution in accordance with this Act on priority.
(3) Without prejudice to subsection (2)(b), the secured creditor that is enforcing a security interest shall pay the surplus remaining to a subordinate competing claimant that, prior to a distribution of the surplus, notified the secured creditor enforcing the security interest of the subordinate claimant's claim, to the extent of the amount of that claim, and remit the balance remaining to the grantor.
(4) A debtor remains liable for an amount owing after application of the net proceeds of enforcement to the secured obligation.