§ 3712. — Disposition of sale proceeds.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3712]
TITLE 12--BANKS AND BANKING
CHAPTER 38--MULTIFAMILY MORTGAGE FORECLOSURE
Sec. 3712. Disposition of sale proceeds
Money realized from a foreclosure sale shall be made available for
obligation and expenditure--
(1) first to cover the costs of foreclosure provided for in
section 3711 of this title;
(2) then to pay valid tax liens or assessments prior to the
mortgage;
(3) then to pay any liens recorded prior to the recording of the
mortgage which are required to be paid in conformity with the terms
of sale in the notice of default and foreclosure sale;
(4) then to service charges and advancements for taxes,
assessments, and property insurance premiums;
(5) then to the interest;
(6) then to the principal balance secured by the mortgage
(including expenditures for the necessary protection, preservation,
and repair of the security property as authorized under the mortgage
agreement and interest thereon if provided for in the mortgage
agreement); and
(7) then to late charges.
Any surplus after payment of the foregoing shall be paid to holders of
liens recorded after the mortgage and then to the appropriate mortgagor.
If the person to whom such surplus is to be paid cannot be located, or
if the surplus available is insufficient to pay all claimants and the
claimants cannot agree on the allocation of the surplus, or if any
person claiming an interest in the mortgage proceeds does not agree that
some or all of the sale proceeds should be paid to a claimant as
provided in this section, that part of the sale proceeds in question may
be deposited by the foreclosure commissioner with an appropriate
official or court authorized under law to receive disputed funds in such
circumstances. If such a procedure for the deposit of disputed funds is
not available, and the foreclosure commissioner files a bill of
interpleader or is sued as a stakeholder to determine entitlement to
such funds, the foreclosure commissioner's necessary costs in taking or
defending such action shall be deductible from the disputed funds.
(Pub. L. 97-35, title III, Sec. 369D, Aug. 13, 1981, 95 Stat. 429.)
