KRS 304.33-420: Secured creditor's claims.

(1) The value of any security held by a secured creditor shall be determined in one (1)

of the following ways, as the court directs:

(a) By converting the same into money according to the terms of the agreement

pursuant to which the security was delivered to such creditor;

(b) By agreement, arbitration, compromise or litigation between the creditor and

the liquidator.

(2) The determination shall be under the supervision and control of the court. The

amount so determined shall be credited upon the secured claim, and any deficiency

shall be treated as an unsecured claim. If the claimant surrenders his security to the

liquidator, the entire claim shall be allowed as if unsecured.