Effect of IVA dividend

Household Mortgage Corporation plc v Whitehead and another (CA TLR 29 November)

Where a mortgage lender made a claim in a voluntary arrangement as an unsecured creditor and accepted a dividend in respect of that claim, it was not to be treated as having elected to abandon its security for any part of the mortgage debt which was secured, but it was entitled to insist that its security be redeemed for the full amount of the mortgage debt on the subsequent sale of the mortgaged property for an amount in excess of the mortgage debt, giving credit for the amount actually received under the arrangement.