2005 Idaho Code - 37-2807 — PERSONAL PROPERTY -- RIGHTS OF THIRD PARTIES

                                  TITLE  37
                             FOOD, DRUGS, AND OIL
                                  CHAPTER 28
                             CRIMINAL FORFEITURES
    37-2807.  PERSONAL PROPERTY -- RIGHTS OF THIRD PARTIES. (1) Within five
(5) days of any of the events specified in section 37-2806, Idaho Code,
notice, including a copy of the request for forfeiture, shall be given to each
co-owner or party in interest who has or claims any right, title or interest
in any of such personal property according to one (1) of the following
methods:
    (a)  Upon each co-owner of or party in interest in a titled motor vehicle,
    aircraft or other conveyance, by mailing notice by certified mail to the
    address of each co-owner and party in interest as given upon the records
    of the appropriate department of state or federal government where records
    relating to such conveyances are maintained.
    (b)  Upon each secured party and assignee designated as such in any UCC-1
    financing statement on file in an appropriate filing office covering any
    personal property sought to be forfeited, by mailing notice by certified
    mail to the secured party and the assignee, if any, at their respective
    addresses as shown on such financing statement.
    (c)  Upon each co-owner or party in interest whose name and address is
    known, by mailing notice by registered mail to the last-known address of
    such person.
    (2)  Within twenty (20) days after the mailing of the notice, the co-owner
or party in interest may file a verified answer and claim to the property
described in the notice.
    (3)  If a verified answer is filed within twenty (20) days after mailing
of the notice, the forfeiture proceeding against all co-owners and parties in
interest who have filed verified answers shall be set for hearing before the
court without a jury on a day not less than sixty (60) days after the mailing
of the notice; and the proceeding shall have priority over other civil cases.
    (a)  At the hearing, any co-owner or party in interest who has a verified
    answer on file may show by competent evidence that his interest in the
    titled motor vehicle, aircraft or other conveyance is not subject to
    forfeiture because he could not have known in the exercise of reasonable
    diligence that the titled motor vehicle, aircraft or other conveyance was
    being used, had been used or was intended to be used for the purposes
    described in section 37-2801, Idaho Code.
    (b)  A co-owner, or claimant of any right, title, or interest in the
    property may prove that his right, title or interest, whether under a
    lien, mortgage, security agreement, conditional sales contract or
    otherwise, was created without any knowledge or reason to believe that the
    property was being used, had been used or was intended to be used for the
    purpose alleged;
         (i)  In the event of such proof, the court shall order that portion
         of the property or interest released to the bona fide or innocent
         co-owner, purchaser, lienholder, mortgagee, secured party or
         conditional sales vendor.
         (ii) If the amount due to such person is less than the value of the
         property, the property may be sold at public auction or in another
         commercially reasonable method by the attorney general or appropriate
         prosecuting attorney. If sold at public auction, the attorney
         general, or appropriate prosecuting attorney, shall publish a notice
         of the sale by at least one (1) publication in a newspaper published
         and circulated in the city, community or locality where the sale is
         to take place at least one (1) week prior to sale of the property.
         The proceeds from such sale shall be distributed as follows in the
         order indicated:
              1.  To the bona fide or innocent co-owner, purchaser,
              conditional sales vendor, lienholder, mortgagee or secured party
              of the property, if any, up to the value of his interest in the
              property.
              2.  The balance, if any, in the following order:
                   (A)  To the attorney general or appropriate prosecuting
                   attorney, for all expenditures made or incurred by them in
                   connection with the sale, including expenditure for any
                   necessary repairs, storage or transportation of the
                   property, and for all expenditures made or incurred by him
                   in connection with the forfeiture proceedings including,
                   but not limited to, expenditures for witnesses' fees,
                   reporters' fees, transcripts, printing, traveling and
                   investigation.
                   (B)  To the law enforcement agency of this state which
                   seized the property for all expenditures for traveling,
                   investigation, storage and other expenses made or incurred
                   after the seizure and in connection with the forfeiture of
                   any property seized under this chapter.
                   (C)  The remainder, if any, to the director of the Idaho
                   state police for credit to the drug enforcement donation
                   fund created in section 57-816, Idaho Code, or to the
                   appropriate prosecuting attorney for credit to the local
                   drug enforcement donation fund, or its equivalent.
              3.  Notwithstanding any other provision of this section, upon
              being satisfied that the interest of a co-owner or claimant
              should not be subject to forfeiture because they neither knew
              nor should have known that the personal property was being used
              or had been used for the purposes alleged, or that due to
              preexisting security interests in such property there is no
              equity which may be forfeited, the attorney general or
              appropriate prosecuting attorney may release the property to the
              co-owner, holder of the security interest, or other claimant.
              4.  In any case, the attorney general, or appropriate
              prosecuting attorney, may, within thirty (30) days after order
              of forfeiture, pay the balance due to the bona fide lienholder,
              mortgagee, secured party or conditional sales vendor and thereby
              purchase the property for use to enforce this chapter.