61-3705. Application of proceeds. - Kansas Statutes

61-3705

Chapter 61.--PROCEDURE, CIVIL, FOR LIMITED ACTIONS Article 37.--REPLEVIN AND FORECLOSURE OF SECURED INTERESTS

      61-3705.   Application of proceeds.(a) Uponthe sale of personal property by the appropriate officer, the clerk of thecourt shall applythe proceeds of sale in the following priority:

      (1)   To the court costs of the action including the officer's expenses andcost of publication;

      (2)   in accordance with the provisions of K.S.A. 60-2406, and amendmentsthereto;

      (3)   in satisfaction of all judgments rendered in the action against thedefendant or the propertyin accordance with the priority determined by the court;

      (4)   any surplus shall be paid to the defendant, except that if any othersecurity interest holder, subsequent to the entering of the judgment offoreclosure, files with the clerk of the courta written notification of demand furnishing reasonable proof ofthe security interest holder's interest, the clerkshall withhold any payment to the defendant. Such security interest holdershall serve thedefendant with notice of the demand within 10 days after suchfiling and furnishproof of such notice to the court.

      (b)   If the defendant does not, within 10 days, notify the clerk in writingthat the defendant takesexception to the demand of such security interest holder, the clerk shall applythe surplus tothe demand and pay any balance to the defendant.

      (c)   If the defendant, within 10 days, notifies the clerk in writing that thedefendant takesexception to the demand, the clerk shall withhold all surplus inthe clerk's possession for a periodof 30 days. If the security interest holder has not commenced a separate actiontorecover the security interest holder's claim and garnished the clerk within thetime, the clerk shall paythe surplus to the defendant.

      History:   L. 2000, ch. 161, § 77; Jan. 1, 2001.