Chapter Five SECURITY UNDER LITIGATION
71. (Method of providing security and change in security)
1. Security shall be provided based on [a method in which cash or negotiable securities
deemed appropriate by the court are deposited with a deposit office] [a method in
which cash or negotiable securities deemed appropriate by the court are deposited
with the court] [another method established by law].
2. The court may, upon motion of the person who furnished security, order by ruling
that the security be changed. However, this shall not prevent the security from being
changed to a different security based on a contractual agreement.
72. (Rights of person receiving provision of security)
The person receiving a provision of security in order to secure such person's rights is
entitled to receive payment from the cash or negotiable securities deposited in
accordance with the provisions of Article 71 (Method of providing security and change
in security) in preference to other creditors.
73. (Cancellation of security)
1. A 'person entitled to security' as used in this Article means a person who receives a
provision of security for the benefit of such person.
2. Where a person who has furnished security has established that the grounds for the
provision of security have disappeared, the court shall, upon motion, order by ruling
that such security be cancelled.
3. The provisions of Paragraph 2 shall also apply where it is established that the person
who furnished the security has obtained the consent of the person entitled to security
to cancellation of the security.
4. Where the court, after the occurrence of grounds for the exercise of the rights
conferred on the person entitled to security, demands upon motion of the person who
furnished the security that the person entitled to security exercise such rights within
two weeks and the person entitled to security fails to exercise such right within such
time period, the person entitled to security shall be deemed to have consented to the
cancellation of the security.
5. A Chomtoah appeal may be filed against the rulings described in Paragraphs 2 and
3.
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