Cap. 13 Art. 533Redemption of pledges.

(1) Upon being instructed to proceed to the sale of assets comprising the bankruptcy estate, the bankruptcy trustee shall be authorized to redeem pledges, for the benefit of the bankruptcy estate, upon payment of the respective debts.

(2) If the pledge is not redeemed by the bankruptcy trustee, and is sold by the creditor for a price exceeding the debt, the surplus shall be collected by the bankruptcy trustee; if the price realized is less than the debt, the creditor who had the pledge may prove and compete for the difference.