§ 46-48. Disposition of sale proceeds.

A.  The mortgagee shall apply the proceeds of the sale as follows:

1.  To the costs and expenses of exercising the power of sale and of sale, including the payment of reasonable attorney's fees actually incurred; and

2.  Unless otherwise required by law, to the payment of the contract or indebtedness secured by the mortgage, the payment of all other obligations provided in or secured by the mortgage, and the obligations of any junior lienholders or encumbrancers, in order of their priority as otherwise provided for by law.  After payment in full to all junior lienholders and encumbrancers, payment shall be made to the party who is the owner of the property immediately preceding the sale.

B.  The mortgagee may elect to deposit all or any part of the sale proceeds with the clerk of the district court in the county in which the sale took place.  Upon deposit of such monies together with a legal description of the property whose sale produced the proceeds, the mortgagee shall be discharged from all responsibility for acts performed in good faith according to the provisions of this act, and the clerk shall deposit the amount with the county treasurer subject to order of the district court in the county upon the application, by civil action, of any interested party.

Added by Laws 1986, c. 319, § 9, eff. Nov. 1, 1986.