§ 20-28.5. Forfeiture of impounded motor vehicle or funds. - North Carolina Statutes

§ 20‑28.5.  Forfeitureof impounded motor vehicle or funds.

(a)        Sale. – A motorvehicle ordered forfeited and sold or a seized motor vehicle authorized to besold pursuant to G.S. 20‑28.3(i), shall be sold at a public saleconducted in accordance with the provisions of Article 12 of Chapter 160A ofthe General Statutes, applicable to sales authorized pursuant to G.S. 160A‑266(a)(2),(3), or (4), subject to the notice requirements of this subsection, and shallbe conducted by the county board of education or a person acting on its behalf.Notice of sale, including the date, time, location, and manner of sale, shallbe given by first‑class mail to all motor vehicle owners of the vehicleto be sold at the address shown by the records of the Division. Written noticeof sale shall also be given to all lienholders on file with the Division.Notice of sale shall be given to the Division in accordance with the proceduresestablished by the Division. Notices required to be given under this subsectionshall be mailed at least 10 days prior to the date of sale. A lienholder shallbe permitted to purchase the motor vehicle at any such sale by bidding in theamount of its lien, if that should be the highest bid, without being requiredto tender any additional funds, other than the towing and storage fees. Thecounty board of education, or its agent, shall not sell, give, or otherwisetransfer possession of the forfeited motor vehicle to the defendant, the motorvehicle owner who owned the motor vehicle immediately prior to forfeiture, orany person acting on the defendant's or motor vehicle owner's behalf.

(b)        Proceeds of Sale. –Proceeds of any sale conducted under this section, G.S. 20‑28.2(f)(5), orG.S. 20‑28.3(e3)(3), shall first be applied to the cost of sale and then tosatisfy towing and storage costs. The balance of the proceeds of sale, if any,shall be used to satisfy any other existing liens of record that were properlyrecorded prior to the date of initial seizure of the vehicle. Any remainingbalance shall be paid to the county school fund in the county in which themotor vehicle was ordered forfeited. If there is more than one school board inthe county, then the net proceeds of sale, after reimbursement to the countyboard of education of reasonable administrative costs incurred in connectionwith the forfeiture and sale of the motor vehicle, shall be distributed in thesame manner as fines and other forfeitures. The sale of a motor vehiclepursuant to this section shall be deemed to extinguish all existing liens onthe motor vehicle and the motor vehicle shall be transferred free and clear ofany liens.

(c)        Retention of MotorVehicle. – A board of education may, at its option, retain any forfeited motorvehicle for its use upon payment of towing and storage costs. If the motorvehicle is retained, any valid lien of record at the time of the initialseizure of the motor vehicle shall be satisfied by the county board ofeducation relieving the motor vehicle owner of all liability for the obligationsecured by the motor vehicle. If there is more than one school board in thecounty, and the motor vehicle is retained by a board of education, then thefair market value of the motor vehicle, less the costs for towing, storage,reasonable administrative costs, and liens paid, shall be used to determine andpay the share due each of the school boards in the same manner as fines andother forfeitures.

(d)        Repealed by SessionLaws 1998‑182, s. 5.

(e)        Order ofForfeiture; Appeals. – An order of forfeiture is stayed pending appeal of aconviction for an offense that is the basis for the order. When the convictionof an offense that is the basis for an order of forfeiture is appealed fromdistrict court, the issue of forfeiture shall be heard in superior court denovo. Appeal from a final order of forfeiture shall be to the Court of Appeals.(1997‑379, s. 1.4; 1998‑182, s. 5; 1998‑217, s.62(d); 1999‑456, s. 11.)