Cap. 503 чл. 33A"Further remedies of mortgagee.

(1) Any sum collected or received by the mortgagee as a result of the exercise of any of the remedies set out in article 33 and including sums in reimbursement of any reasonable costs in the exercise of such remedies, shall be applied by the mortgagee towards discharge of the secured obligations, subject to the satisfaction of any prior rights of creditors under Part V or Part VII.

(2) Unless otherwise ordered by the court, in the event that there are excess funds after the exercise carried out by the mortgagee under sub-article (1) including any reasonable costs incurred for such purpose, the mortgagee shall pay the surplus as follows:

(a) to creditors with subsequently ranking rights or interests of which the mortgagee has been given notice, in order of priority according to applicable law; and

(b) thereafter, pay any remaining balance to the mortgagor.

(3) In the event of disagreement as to the ranking between the mortgagee and, or the creditors having claims against the aircraft or engine, the mortgagee or any creditor satisfying the court of its claim on the aircraft or engine, or proceeds thereof, may apply to the court for the court to establish the ranking among themselves, or other preferred creditors who may join the proceedings within a period established by the court, for the purposes of this article. Persons who do not prove to the court that they have a preferred claim shall not be permitted to participate in the proceedings at this stage.

(4) The court may order sufficient security to be provided by the mortgagee over the proceeds held by the mortgagee, but not in excess of such proceeds, pending the determination of the application referred to in the preceding sub-article.

(5) This article does not apply to the case of an aircraft being sold through a judicial auction or a private sale authorised by the court on the enforcement of a mortgage, international interest or security interest, but may be applied with the consent of the court if

(a) all the parties to the proceedings have agreed to its application or (b) the mortgagee acquires the aircraft in the judicial auction in set-off, in full or partially, of its claims.

(6) In carrying out its functions under this article the mortgagee shall, with respect to funds held by it, be subject to fiduciary duties in favour of other creditors participating in the process and this until the allocation of funds has been agreed or finally determined by the court, or the proceeds which are not allocated to its claim are deposited under authority of the court or such other person as may be agreed among the parties.