21-45-51. Application of proceeds of sale of encumbered property.

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 or 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.

Source: CCivP 1877, § 567; CL 1887, § 5381; RCCivP 1903, § 606; RC 1919, § 2817; SDC 1939 & Supp 1960, § 37.1418.