Purchasers, mortgagees, pledgees, or lienors; allowance of claims
Sec. 6. At any sale of real or personal property upon which there
is a mortgage, pledge or other lien, the holder thereof may become
the purchaser and may apply the amount of his lien on the purchase
price in the following manner. If no claim thereon has been filed or
allowed, the court, at the hearing on the report of sale and for
confirmation of the sale, may examine into the validity and
enforceability of the lien or charge and the amount due thereunder
and secured thereby and may authorize the personal representative
to accept the receipt of such purchaser for the amount due thereunder
and secured thereby as payment pro tanto. If such mortgage, pledge
or other lien is a valid claim against the estate and has been allowed,
the receipt of the purchaser for the amount due him from the
proceeds of the sale is a payment pro tanto. If the amount for which
the property is purchased, whether or not such claim was filed or
allowed, is insufficient to defray the expenses and discharge his
mortgage, pledge or other lien, the purchaser must pay an amount
sufficient to pay the balance of such expenses and the amount
credited to the payment of his claim shall be reduced accordingly.
Nothing permitted under the terms of this section shall be deemed to
be an allowance of a claim based upon such mortgage, pledge or
other lien.
(Formerly: Acts 1953, c.112, s.1506.)
Last modified: May 27, 2006