Section 1220 – Proceeds of sale of encumbered property — Disposition of.

78B-6-1220. Proceeds of sale of encumbered property — Disposition of.
The proceeds of the sale of encumbered property shall be applied under the direction of the court, as follows:

• (1) to pay its just proportion of the general costs of the action;

• (2) to pay the costs of the reference;

• (3) to satisfy and cancel all recorded liens in their order of priority, by payment of the sums due and to become due; the amount due to be verified by affidavit at the time of payment;

• (4) the residue among the owners of the property sold according to their respective shares therein.

Renumbered and Amended by Chapter 3, 2008 General Session