426.290 Sale of encumbered property under execution -- Rights of purchaser,

311 words·~1 min read·/ky/426-290

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

creditor -- Redemption -- Bond of purchaser of personalty -- Control of courts.

(1)If the defendant in an execution owns the legal title to any real or personal property

on which a bona fide encumbrance created prior to the execution lien exists, the

interest of the defendant in the property may be levied on and sold, subject to the

encumbrance.

(2)The purchaser at the sale shall acquire a lien on such property for the purchase

money, and interest at the rate of ten percent per annum from the day of sale until

paid, subject to any prior encumbrance.

(3)Any other creditor, whether by judgment or otherwise, may, after such execution

and sale, by equitable proceedings, subject the encumbered property to sale, and,

after satisfying prior liens, have his demand satisfied out of the proceeds of the

residue. The proceedings in equity shall be instituted before the purchaser has, by

suit, enforced the lien provided for in subsection

(2)of this section.

(4)The defendant in the execution may redeem the property sold by paying the original

encumbrance, with legal interest thereon, and by paying the purchaser his purchase

money, with ten percent per annum interest thereon.

(5)The purchaser of encumbered movable property shall, before possession is

delivered to him, give an obligation with good surety payable to the encumbrancer

and the owner, stipulating that the property shall not be removed out of the county

and shall be preserved and forthcoming, unavoidable accidents excepted, to answer

the encumbrance, and for redemption, and deliver the obligation to the officer to be

returned with the execution.

(6)Courts of equity shall have control of all encumbered property sold under execution,

and may make all needful orders for the preservation and forthcoming of the

property and its issues and profits, to satisfy the encumbrance and to secure the

rights of others.