I. The value of any security held by a secured creditor shall be determined in one 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.
II. 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.