How proceeds of encumbered property applied
N.D. Cent. Code § 32-16-20
in effect32-16-20. How proceeds of encumbered property applied
The proceeds of the sale of encumbered property must 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 of record the several liens in their order of priority, by payment of
the sums due and to become due, and 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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t32c16.pdf#nameddest=32-16-20Fetched: 10/16/2026