§ 3762. — 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: 12USC3762]
TITLE 12--BANKS AND BANKING
CHAPTER 38A--SINGLE FAMILY MORTGAGE FORECLOSURE
Sec. 3762. Disposition of sale proceeds
(a) Priority payments
Money realized from a foreclosure sale shall be made available for
obligation and expenditure in the following order:
(1) Costs of foreclosure
To cover the costs of the foreclosure proceeding described in
section 3761 of this title.
(2) Tax liens
To pay valid tax liens or assessments if required by the notice
of default and foreclosure sale.
(3) Prior liens
To pay any liens recorded before 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) Service charges and advances
To pay service charges and advances for taxes, assessments, and
property insurance premiums.
(5) Interest
To pay any outstanding interest.
(6) Principal
To pay the principal outstanding 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).
(7) Late charges or fees
To pay any late charges or fees.
(b) Other payments
(1) Other lienholders and the mortgagor
Any surplus of proceeds from a foreclosure sale, after payment
of the items described in subsection (a) of this section shall be
paid in the following order:
(A) First, to holders of liens recorded after the mortgage
in the order of priority under Federal law or the law of the
State in which the security property is located.
(B) Second, to the appropriate mortgagor.
(2) Disputed claims
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 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 incurred in taking or
defending such action shall be deductible from the disputed funds.
(Pub. L. 103-327, title II, Sept. 28, 1994, 108 Stat. 2316.)
Codification
Section is based on section 813 of title VIII of S. 2281, One
Hundred Third Congress, as reported July 13, 1994, which was enacted
into law by Pub. L. 103-327.
Section Referred to in Other Sections
This section is referred to in section 3768 of this title.
