57-1-29 - Proceeds of trustee's sale -- Disposition.
57-1-29. Proceeds of trustee's sale -- Disposition.
(1) (a) The trustee shall apply the proceeds of a trustee's sale in the following order:
(i) first, to the costs and expenses of exercising the power of sale and of the sale,including the payment of the trustee's and attorney fees actually incurred not to exceed anyamount provided for in the trust deed;
(ii) second, to payment of the obligation secured by the trust deed; and
(iii) (A) the balance, if any, to the person or persons legally entitled to the proceeds; or
(B) the trustee, in the trustee's discretion, may deposit the balance of the proceeds withthe clerk of the district court of the county in which the sale took place.
(b) If the proceeds are deposited with the clerk of the district court, the trustee shall filean affidavit with the clerk setting forth the facts of the deposit and a list of all known claimants,including known addresses.
(c) Upon depositing the balance and filing the affidavit, the trustee is discharged from allfurther responsibility and the clerk shall deposit the proceeds with the state treasurer subject tothe order of the district court.
(2) The clerk shall give notice of the deposited funds to all claimants listed in thetrustee's affidavit within 15 days of receiving the affidavit of deposit from the trustee.
(3) (a) Any claimant may file a petition for adjudication of priority to the funds.
(b) A petitioner requesting funds under Subsection (3)(a) shall give notice of the petitionto all claimants listed in the trustee's affidavit and to any other claimants known to the petitioner.
(c) The petitioner's notice under Subsection (3)(b) shall specify that all claimants have 45days to contest the petition by affidavit or counter-petition.
(d) If no affidavit or counter-petition is filed within 45 days of the notice required bySubsection (3)(c), the court shall, without a hearing, enter an order directing the clerk of the courtor the county treasurer to disburse the funds to the petitioner according to the petition.
(4) (a) If a petition for adjudication is contested by affidavit or counter-petition, thedistrict court shall, within 20 days, conduct a hearing to establish the priorities of the parties tothe deposited funds and give notice to all known claimants of the date and time of the hearing.
(b) At a hearing under Subsection (4)(a), the court shall establish the priorities of theparties to the deposited funds and enter an order directing the clerk of the court or countytreasurer to disburse the funds according to the court's determination.
(5) A person having or claiming to have an interest in the disposition of funds depositedwith the court under Subsection (1) who fails to appear and assert the person's claim is barredfrom any claim to the funds after the entry of the court's order under Subsection (4).
Amended by Chapter 230, 2008 General Session