Where, under any provision of this Act, this section is applied to any security provided in relation to a regulated agreement, then, subject to section 177 (saving for registered charges)—
the security, so far as it is so provided, shall be treated as never having effect;
any property lodged with the creditor or owner solely for the purposes of the security as so provided shall be returned by him forthwith;
the creditor or owner shall take any necessary action to remove or cancel an entry in any register, so far as the entry relates to the security as so provided; and
any amount received by the creditor or owner on realisation of the security shall, so far as it is referable to the agreement, be repaid to the surety.