Determination of secured interest and appraised value; disposition
of property; payment
Sec. 5. (a) If:
(1) the court has entered judgment in favor of the state, and a
unit (if appropriate) concerning property that is subject to
seizure under this chapter; and
(2) a person:
(A) holding a valid lien, mortgage, security interest, or
interest under a conditional sales contract; or
(B) who is a co-owner of the property;
did not know of the illegal use;
the court shall determine whether the secured interest or the
co-owner's interest is equal to or in excess of the appraised value of
the property.
(b) Appraised value is to be determined as of the date of judgment
on a wholesale basis by:
(1) agreement between the secured party or the co-owner and
the prosecuting attorney; or
(2) the inheritance tax appraiser for the county in which the
action is brought.
(c) If the amount:
(1) due to the secured party; or
(2) of the co-owner's interest;
is equal to or greater than the appraised value of the property, the
court shall order the property released to the secured party or the
co-owner.
(d) If the amount:
(1) due the secured party; or
(2) of the co-owner's interest;
is less than the appraised value of the property, the holder of the
interest or the co-owner may pay into the court an amount equal to
the owner's equity, which shall be the difference between the
appraised value and the amount of the lien, mortgage, security
interest, interest under a conditional sales contract, or co-owner's
interest. Upon such payment, the state or unit, or both, shall
relinquish all claims to the property, and the court shall order the
payment deposited as provided in section 4(d) of this chapter.
(e) If the seized property is a vehicle and if the security holder or
the co-owner elects not to make payment as stated in subsection (d),
the vehicle shall be disposed of in accordance with section 4(c) of
this chapter.
As added by P.L.1-1998, SEC.19.
Last modified: May 24, 2006